UK internet insurance provider Esure is reportedly returning its Indian call centers to the UK as a result of customer dissatisfaction. According to the This Is Money, Peter Wood, the company's founder, has implied that the recent move towards outsourcing in the UK financial services industry cannot last.
Esure, which includes the Sheila’s Wheels brand, opened call centers in India just two years ago. According to This Is Money, Mr Wood claimed that the decision to outsource to India had been a result of problems recruiting staff in the Manchester area, rather than a money saving strategy.
The news site reported, however, that many customers have since left the insurer as a result of poor service and communication problems, which has prompted the company to make a u-turn on this policy. Mr Wood, who also founded insurance company Direct Line, is quoted as commenting: The customers do not like it and we got more turnover than we thought we would.
While Mr Wood reportedly claimed that outsourcing back office processing to India was still a workable policy, he also commented: If you start to damage your reputation, forget whatever trivial money you’re saving.
The news comes as both Norwich Union and Newcastle Building Society are also believed to be moving their outsourced Indian call centers back to the UK; attesting a return to UK operations would be more efficient and would be in line with consumer demands.