The UK-based insurance major, Royal & Sun Alliance, which recently announced plans to cut 1,000 jobs in the UK, is likely to set up a 100-seat call centre in India.

The centre will act as an offshore centre but and will mark one of the first t outsourcing ventures in finance.

The reduction in manpower in UK will be partly compensated by providing the service from such offshore centres or outsourced from other companies over 12 months. India has naturally emerged as a possible destination.

The official spokesperson on from the company confirmed the move and said, More Th>n, the direct financial services arm of Royal & SunAlliance, is setting up a pilot call centre overseas during 2004 involving 100 roles.

The call centre will be for our direct customers only. In a very competitive market, it clearly makes sense for us to consider how best to improve the efficiency of our operations."

Although Royal Sun is yet to decide on the state where it will be setting up the centre, sources close to the development said Bangalore could be one possible destination.

This has resulted in speculation among Royal Sun Alliance employees in the UK and it was reported in one of newspapers that these 100 jobs would be lost in the UK and moved to India.

The news paper reported, 'Some of the 230 employees of the More Th>n call centre could be among 100 across the country to be "outsourced" abroad. More Th>n call centres employ 1,600 people in UK, including 230 at the Ipswich offices in UK.

Royal Sundaram in India has been expanding at a very fast pace. The overseas business, according to reports, has been hit over the past few years by a slump in stock markets and a shortage of capital to cover claims.

The company at present is looking to bolster its frail balance-sheet and provide sufficient spare cash to help grow profits.