Inside Global Offshore Outsourcing in Insurance
LION is a global financial institution offering a variety of products and services ranging from banking and insurance to asset management. It employs about 115,000 people and serves private, corporate, and institutional clients in more than 50 countries. In the mid-2000s offshore outsourcing really took off, and this case study provides one example of a successful experience. In 2006 the savings and loan division of LION Netherlands initiated a major outsourcing agreement. The agreement was signed with FDL, an organization that LION had already been co-operating with. At the time FDL was a leading outsourcing provider specializing in the financial industry. The company had a global presence and served more than 60 countries. The contract was on application development, support, and maintenance. The cost model appeared to be very efficient, as 70% of the labour was offshored to India, namely, in Bangalore and Chennai, and 30% was based in Amsterdam. The offshored service was delivered by an Indian supplier which was an FDL company.