Our Indian captive has delivered significant cost savings

Captive IT setups are seen as cost centers due to

recessionary trends, but Allianz Cornhill is expanding. Why?



Our Indian captiveACIS in Trivandrumhas delivered significant cost savings

coupled with enhanced flexibility to the business managers in our Allianz UK

operations. This position has been built up steadily over the last six years,

and is not subject to short term economic uncertainty. ACIS began working with

other Allianz companies in a small way, over a year ago. This now involves five

different business units, a range of services, and is producing very good

results. Allianz Group has seen the breadth and depth of benefits delivered for

the UK Company, and is actively encouraging working with ACIS.

How would you rate your RoI so far by taking a captive

approach?



The ROI in ACIS has been very satisfactory. We also prefer the combination

of cost-efficiency, control, and alignment. The targets for the group which is

one of the worlds leading financial services companies are very ambitious, and

require world-class performance. Expense pressure and competition in the UK are

particularly acute. Locating some of our operations in Kerala provided

significant cost efficiency, and hence improved our competitive position.

Going forward, what would be your strategy on the

offshoring front?



Our strategy has been and remains to work in partnership and work

increasingly with our UK Group. We continually apply our learnings to identify

and develop new opportunities. ACIS has and will continue to earn the growth it

enjoys by consistently meeting and exceeding expectations, moving up the value

chain, and enhancing the value and flexibility it delivers.

What is your experience so far operating out of an

emerging location such as Trivandrum? Has it met your expectations?



Our decision to set up our captive facility at Technopark in 2003 was based

on many factors including cost, size of peer companies, common infrastructure,

attractive location, quality of graduates from local colleges, and the sense

that that we could attract back many natives who left the state for work

elsewhere. Our experience has been positive, and we remain committed to the

Technopark in Trivandrum.

Shrikanth G



shrikanthg@cybermedia.co.in