The Capita Group and Marsh Limited have signed a deal worth GBP187 million over 10 years, to deliver and transform Marsh's UK operations.

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 transfer of an undertaking to Capita and the current offshored work will be transferred to Capita’s new offshore facility in Pune, India. Service commencement will be on July 1, 2008.

Capita will undertake a comprehensive transformation program 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 center of excellence for insurance outsourcing services based in Marsh’s existing Norwich premises. The capacity and capability within this center will primarily be used to transform Marsh’s UK operations. Over time, options to utilize this facility for other Marsh and Capita insurance activities will be considered.

Paul Pindar, CEO 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.

Martin South, CEO 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.