600 Marsh staff will transfer to Capita.

The Capita Group and Marsh have today signed a deal to deliver and transform Marsh’s UK operations.

The contract will be worth £187 million to Capita over 10 years. Insurance Times predicted the deal in April (news 24 April 2008).

Capita announced that it had been selected as preferred bidder by Marsh on 11 January this year.

Under the agreement, Capita will provide support and processing services to enhance Marsh’s broking activities to clients across its multinational business.

Marsh’s UK operations are based in Norwich with some offshored services delivered by an external provider in India.

Approximately 600 Marsh employees will transfer under TUPE to Capita and the current offshored work will be transferred to Capita’s new offshore facility in Pune, India. Service commencement will be 1 July 2008.

Capita will undertake a comprehensive transformation programme to enhance service provision to Marsh and its clients while delivering significant reductions in operational transaction costs.

Alongside this service transformation, Capita will create a centre of excellence for insurance outsourcing services based in Marsh’s existing Norwich premises.

The capacity and capability within this centre will primarily be used to transform Marsh’s UK operations. Over time, options to utilise this facility for other Marsh and Capita insurance activities will be considered.

Paul Pindar, chief executive of The Capita Group, said: “This partnership will draw upon Capita’s technical expertise across the insurance market and service re-engineering capabilities across the wider financial services industry. An integrated operating infrastructure will deliver cost and quality benefits alongside enhanced customer service and provide a flexible platform for Marsh’s current and new business. The work will continue to be delivered from a Norwich base and we look forward to welcoming all staff who transfer to Capita.”

Martin South, chief executive of Marsh UK, said: “We are very pleased to have established this partnership with Capita and are confident it will be beneficial to both our clients and our staff. In particular, it will transform the way in which we do business, supporting our commitment to providing a customer experience that’s truly world-class. It will also give our staff increased opportunities for career development.”