The investment is seen as a commitment of the company's policy to keep its call centre operations at Holgate Park, York, and Tamworth, rather than outsourcing abroad.
The software, known as Customer Interaction Management (CIM), will bring together details of every e-mail and letter written, along with phone calls made by a customer, into one file. The technology will help the company improve services for customers whose personal possessions, including mobile phones and keys and cash cards, have been lost or stolen. The new technology will also increase productivity and cut operating costs on the 439,000 calls it deals with each month. The software will put CPP "at the cutting edge of contact centres anywhere in the world", apparently.
CPP primarily works with banks and insurers to provide protection against credit card fraud. The firm also specialises in mobile phone insurance and operates in the life assistance market – helping to protect customers against identity theft.
The news is a welcome boost to the city after recent job losses from employer Norwich Union which announced in September plans to shed 4,000 posts across its UK operations with 1,000 jobs moving to India. Established in 1980, CPP employs more than 1,500 staff worldwide who handle more than 10 million calls a year. It also has operations in Germany, Spain, France, Italy and Portugal.
CPP UK managing director Stephen Kennedy, said: "We have had some back office duties outsourced to Malaysia, as a result of which there was one redundancy.
"But there will be no outsourcing of our call centre work. It is fine for some people, but not for us.
"To sell you have to a rapport with your customers and some at a centre in Malaysia will not in reality be able to build that rapport with UK customers."
In 2007, the group plans to launch two new products.
The first, Money Protection, is a service that card holders (credit or debit) or bank account holders subscribe to which provides transaction alerts and information via a text message to a mobile phone.
The policy holder is sent a text message whenever there is activity on their credit/debit card or bank account. The customer is able to select parameters online to define which transactions they wish to be alerted about.
The second product – Guardian Angel – is an innovative mobile messaging service which addresses the security and safety of individuals by notifying family and friends when they have arrived safely at their destination.
Mr Kennedy added: "Fraud is real and it is happening now. The average UK person thinks that your everyday fraudster is thick. The opposite is true. Fraudsters are very, very clever people. We want to make sure that we are providing our customers with products which are relevant and simple."
kathryn.moore@ypn.co.uk