Max New York, Genpact ink outsourcing pact [The Economic Times, India]

Dec. 30--NEW DELHI -- Max New York Life Insurance, a joint venture between Analjit Singh-promoted Max India and US-based New York Life International, is outsourcing customer service work to BPO firm Genpact, as part of an internal restructuring exercise. The move is aimed at consolidating operations and synergising efficiencies within the organisation, a top company executive told ET.

It will be a three-year contract and the private life insurer is looking to transfer 100 people to Genpact for the purpose. "We are relooking at our overall business strategy and evaluating the way forward," Rajesh Sud, CEO & MD of Max New York Life said.

Customer service refers to the provision of service to customers before and after purchase. In this case, Genpact will send reminders to customers for payment of renewal premium and take calls from them on complaints.

Max New York Life did not disclose the value of the contract.

The life insurer is already witnessing a few exits at senior management level. At least three top-level executives have left the organisation in the past couple of months. While chief marketing office Debashis Sarkar has left the organisation and moved to Canada, Ajay Seth, the firm's senior director-legal & compliance, has quit to pursue other career opportunities. Vishal Chopra, head of new business (operations), is learnt to have joined rival firm DLF Pramerica. Sanjeev Mago, executive VP, customer operations & service delivery, too is scouting for other opportunities, said another person familiar with the development.

With the slowdown in growth in the life insurance sector, the focus of Max New York Life has changed with respect to its expansion plans. Earlier, the private insurer was looking at expanding its operations and adding more number of branches in the country, while now they are looking at consolidation.

"There are changes in operation which will enable us to strengthen our business model," said Mr Sud.

Max New York Life currently has a headcount of 11,400 people, besides another 75,000 agents. It collected Rs 1,003 crore in the April-October period this year from sale of new life insurance policies, a 4 percent dip from the year-ago period, as per the insurance regulator.

Genpact's customer service practice supports more than 10 global enterprises, including companies in the telecom, BFSI, automotive and manufacturing. One of the latest firms that outsourced its services to Genpact was telecom operator Unitech Wireless.

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