Aviva, the UK�s biggest insurer, has realised £115m by selling its controversial Indian processing operations, but reaffirmed its commitment to offshoring.

Aviva, the UK's biggest insurer, has realised £115m by selling its controversial Indian processing operations, but reaffirmed its commitment to offshoring.

Aviva Global Services has been sold to back-office specialist WNS, also based in Mumbai, but Aviva has entered an eight-year deal for the supply of outsourced work to its UK, Irish and Canadian operations. The contract will be worth some $1bn (£500m) to WNS, majority-owned by investment bank and buy-out specialist Warburg Pincus.

In September 2006, Aviva provoked union outrage by announcing the shifting of 1000 jobs to Mumbai, as part of a restructuring that cost 4000 jobs, 450 of them in Scotland. In April this year, the insurer said another 1800 jobs would be cut as it revamped its UK operations and killed off the Norwich Union brand - but none of the work would be transferred to India.

Andrew Moss, who took over as chief executive early in 2007, announced a strategic review of the offshoring operations as part of his new agenda.

Aviva said: "By combining the sale with a long-term master services agreement, Aviva will be able to realise the value of the offshoring operations it has been developing since 2003, while continuing to benefit from the expertise that it has developed in that time and ensuring protection against future inflation and adverse changes in foreign exchange rates."

Cathryn Riley, chair of Aviva Global Services and chief operating officer of Norwich Union Life, said: "We're proud of the significant offshoring capability that we've built over the past five years and we remain firmly committed to offshoring. After an extensive review, we've chosen one of our current suppliers to be our long-term partner, allowing us to build on the strength of our existing relationship to increase the flexibility and cost-certainty within our operation."