Home repair and insurance firm HomeServe will not outsource its customer complaints department as previously announced and will keep it in-house instead, the company said.

HomeServe had announced in December that it would outsource its UK customer complaints unit after previously failing to handle unusually high volumes.

However, after issuing an invitation for companies to bid for the work, HomeServe said it had decided to keep it in-house.

The very good progress we have been making retraining our customer relations staff gives us confidence that, following a thorough procurement process, consistently fair outcomes for our customers can most effectively be delivered by our own customer relations experts, a HomeServe spokesperson told Reuters.

We will be working closely with external advisers to ensure that we build a best-in-class complaints handling function inside the business.

A source familiar with the situation told Reuters that the external advisers would be global accounting and audit firm KPMG.

HomeServe, which sells cover for, and fixes, boilers and burst pipes, has endured a turbulent time since announcing in October that it would suspend UK telesales due to concerns it may be mis-selling products, prompting its share price to halve and customer numbers and renewals to fall.

The group, which is to cut 200 jobs, has since resumed mail marketing and reopened some inbound sales calls but outbound sales remain suspended as staff are retrained with new scripts.

Shares in HomeServe, which has said it is in regular contact with its regulator the Financial Services Authority (FSA) but is not under investigation, were down 0.5 percent to 220.15 pence, down 53 percent on six months ago.

(Editing by Jodie Ginsberg)