Polaris Software on Tuesday signed a professional service agreement (PSA) with AIG Global Services (AIGGS), a wholly-owned subsidiary of Americian International Group Inc (AIG). Under the terms of PSA, Polaris will offer IT services to AIG and its member companies around the globe.
In connection with this deal, Polaris has offloaded its 4.62 lakh shares amounting to Rs 23.26 crore in AIG Systems Solutions Private Ltd (AIGSS) to a subsidiary of AIGGS. The original investment of Polaris in AIGSS was Rs 3.26 crore in 2002. According to Polaris executive vice-president and CFO, R Srikanth, the offloading in AIGSS is a part of a joint venture agreement between the software giant and AIG group before any business venture in AIG group of companies. Polaris played an important role in establishing AIGSS, sharing its physical and communication infrastructure, processes and methodologies, which allowed AIGSS to begin to deliver mission critical applications and application management services soon after it was established.
Speaking at the occasion, S R Ramaswami, executive vice-president and head insurance solutions and application certification, Polaris Software Lab Ltd, said, ?The co-creation outsourcing model which Polaris and AIG put together in 2002, is one of the most innovative, value accretive and secure models, well ahead of its time. We leveraged the benefit of partnering with a global leader in the insurance space to build significantly higher value and deliver higher savings to AIG in building their mission critical applications out of India.?