Insurance broker Marsh will transfer 650 back office employees in the United Kingdom to a professional services support firm within the next four months and move some outsource work from India there as well.

London-based Capita Group Plc. said in a statement that it was selected by Marsh U.K. to take over the back office administration functions of the broker there in a deal that could be worth approximately ?200 million ($394 million U.S. at the current exchange rate) over the next 10 years.

Capita said in a statement that the deal is still subject to final negotiations and the company could begin taking over services by early April.

Under the agreement, Capita said it would provide support and processing services to enhance Marsh's brokerage activities to clients across its business.

The Marsh U.K. operations are based in Norwich, England, with some offshore services delivered by a third-party provider in India.

According to a company spokeswoman for Capita, the 650 Marsh employees would transfer to the company following consultations under the Transfer of Undertakings Protection of Employment Regulations.

She said the act insures that employees who are transferred in a deal such as this work under the same terms and conditions as with their previous employer.

The current offshore work in India will be moved to one of Capita's offshore facilities.

The company said in taking over Marsh U.K. back office operations it would "undertake a comprehensive transformation program to enhance service provision" to the firm. It will also lower costs of operations but keep the service center in its current location.

Martin South, chief executive officer of Marsh U.K., said in a statement that Capita was chosen because of its "excellent track record of service transformation and delivery in the insurance and wider financial services markets." He said the deal would improve services and reduce costs for Marsh U.K.

Paul Pindar, chief executive of Capita, said the deal would provide value for both organizations and improve Marsh's competitiveness in the United Kingdom and globally.

Special Reports /

Marsh U.K. To Transfer 650 Employees To Capita

Related Stories

Recommended For You