One of the UK's biggest insurance firms today announced plans to transfer more than 1,100 jobs to India over the next few years, sparking fears of a "crisis".
Royal & SunAlliance said it will save over £10 million a year by switching call centre and customer service work to Bangalore.
The firm, the second biggest general insurer in the UK, already employs 100 workers in India, so the figure will rise to 1,200 by 2006.
Union officials said the loss of jobs to overseas countries now posed a "very real threat" to the UK economy.
Royal & SunAlliance, which owns the More Than brand, has centres across the UK, including Liverpool, Bristol, Halifax, Birmingham, Glasgow, Manchester, Sunderland and Horsham in Sussex.
"The operation in India will be run in exactly the same way as R&SA's UK centres, using the same performance measures and demanding the same standards, ensuring consistency of service wherever a call is answered," the company said in a statement.
The firm has been running a pilot scheme in India since March, dealing with motor claims, servicing and claims.
Unions warned of a jobs "crisis" because of the level of work being switched overseas and called on the Government to do more to encourage employers to invest in skills.
PA News