Cambridge Solutions secures offshore services contract worth £49 mn over a ten year period

Cambridge Solutions Ltd has announced that Aon Ltd, a leading insurance broking and risk management specialist, and Xchanging, the business processing services company, has announced a partnership with an initial 10-year service contract, effective from September 01, 2006. The ground-breaking deal, involving the outsourcing of Aon’s Client Operations division (which handles current and legacy insurance claims administration and processing, as well as accounting and settlement for clients within Aon’s reinsurance division and its specialist and wholesale units), will transform and evolve the way Aon conducts its business in the London insurance market, allowing it to focus on its core areas of expertise and deliver differentiated levels of service to its clients. The initiative further demonstrates Aon’s and Xchanging’s status as leaders in London market reform.

The Company, a leading offshore process and technology skills company, is the incumbent off shore service provider to Aon UK for claims processing. The Company continues to be the exclusive supplier and will expand the offshore services it provides to the new Xchanging / Aon partnership. The Company’s portion of this contract amounts to £49 Million (Rs 4,339 Million) over the ten year period.

As part of the agreement, more than 500 employees, based primarily in Romford, Leicester and Glasgow, will transfer from Aon to Xchanging. The partnership agreement is based on Xchanging’s unique Enterprise Partnership model approach to the outsourcing, which is designed to handle complexity, minimise any disruption and to start-up with an ‘as is’ business as usual for Aon, while assuming the delivery risk and ensuring guaranteed savings to Aon. The partnership will also leverage the significant talents and capabilities of the transferring employees in order to create a platform to offer market-facing services to the London Market and the larger insurance industry.

Satyen Patel, Executive Vice Chairman, of the Company said, "We consider this innovative partnership to be a ground-breaking one. It leverages the complementary strengths of each partner effectively and provides continuity to an established offshore-outsourcing relationship that Cambridge Solutions Ltd enjoys with Aon UK. More importantly, Cambridge now looks forward to working with Xchanging to service the broader London Insurance Market."

Source : Equity Bulls

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