INTERVIEW: "Priya will not be called Sandra at Allianz Cornhill"

By starting its India offshore operations in 2003, the UK-based insurance
giant Allianz Cornhill was just conforming to the big trend-the India
offshoring wave. Fellow insurers like Prudential, Axa, Aviva, and Churchill
already had successful operations in India. As did a few others from across the
Atlantic.

However, unlike the general tendency of settling in the big centers, Allianz
decided to try the untested waters (well, almost) of Thiruvananthapuram. It has
not regretted its decision. Allianz Cornhill Information Services (ACIS), the
offshoring services subsidiary located at Technopark in the capital of God's
own country, now employs 150 people in its IT and ITeS wings. The company plans
to add another 250 to its rolls by the year 2005.

That is not the only difference. CEO Andrew Torrance claims that Allianz's
clients in the UK are actually happy that they are able to talk to an Indian,
miles away. The proof: agents in the Allianz call center do not fake their
names. During his visit to India in connection with the inauguration of new
facilities, he shared his thoughts on the decision to come to India, choosing
the captive model over the outsourced one, and even some operational issues.

Why have you set up a captive BPO and not gone for third-party
outsourcing?

Setting up a captive BPO may entail costs higher than in third-party
outsourcing, but as a captive outfit we are able to provide the best quality of
service to our customers. Secondly, cost savings in the third-party option can
be negated if service delivery is poor. At ACIS, the employees have a distinct
identity as part of the Allianz group and they are happy about it. In the
third-party option, the employees may be working for more than one company.

GE had created a global sensation when it started its overseas development
center in India in 1996, but now the company is reportedly thinking of selling
off its BPO outfit. How do you assess the new development?

I am surprised by the news about GE rethinking on the Indian BPO operations.
I wish it were not true. India has certain distinct advantages over other
destinations in terms of cost advantage for human resources, infrastructure, and
an enabling environment. We would only be expanding because of the economic
advantages that this BPO outfit gives the Allianz group.

In call centers, usually the customer executives fake their identity so
that the clients sitting abroad do not know that they are talking to a
foreigner. Donning two roles-one the real and the other a fake one-creates
mental problems for employees. How do you tackle this issue?

At ACIS, the call center executives do not fake their identity. Our
customers in UK are happy talking to an Indian, sitting miles away. E.g., our
Priya need not say, 'I am Sandra.' In fact, our customers even ask the
executives if it is hot out there; as you know, English people usually talk
about the weather first. Only a minority had reservations about talking to an
Indian.

How do you react to the proposal to tax BPO companies?

I wish the existing tax regime to continue because we came to India with a
set of incentives. And within the tax holiday period, a new tax is announced
that would undermine the original policy. I think it would also impact on India's
cost competitiveness.

Aren't you worried about the high rate of attrition in the BPO industry?

We are providing opportunities for career progression to our employees
through training in insurance-related areas. Already two of our staff members
have cleared the preliminaries of underwriters' examination of UK.
International-quality work environment and subsidized conveyance facilities are
some of the major attractions. We have recruited from all over India and there
are no early signs of attrition in Allianz as yet.

R Sreekumar, CyberMedia
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