So the long debated and much anticipated saga of the Aviva BOT (Build-Operate-Transfer) has finally been resolved, with WNS Global Services taking on a $1 billion contract to become the British insurance giant’s BPO provider of choice for the next 8 years. WNS will be assuming all of the current 24/7 Customer contact center work and some of EXL Service’s F&A work, with the latter’s contract remaining until 2012. This contract follows a storming 2007 for WNS, where the Mumbai-headquartered firm has made significant inroads into both financial services and retail sectors, in addition to its already dominant position in the airline sector.
Some key points
- This deal will likely propel WNS close to a 10% marketshare for F&A BPO
- WNS’s recent acquisition of BizAps gives the firm much-needed ERP enablement skills at a time the firm is making aggressive strides to compete for enterprise BPO deals – a key requirement
- Not a vote of confidence for the much-vaunted BOT model for business processes – and Wall St. also seems to be going cold on BOT. It’s interesting that Aviva is electing to move to a straight BPO model at the same time it is expanding aggressively into the US domestic insurance market
- WNS’s revenue has rocketed to $460m for fiscal 08 – a 32% hike over 2007, ever since our popular guest columnist Deborah Kops took over their marketing.
$1 Billion Dollars….