Gone are the days when outsourcing used to be only the manufacturers cup of tea. It is being observed that many other sectors have started taking the support of outsourcing. Insurance industry, not being an exception, is keeping up with the joneses. This article makes an in-depth analysis of the concept of business process outsourcing and narrates about the increasing outsourcing scenario in the Insurance industry.
That's not what matters here, for the global outsourcing spending is estimated to increase from US$ 3.78 tn dollars as in 2001 to US$ 5.1 tn by the end of 2003. Hence, it is questions such as "How to leverage on business processes outsourcing? What does it really take to capture the anticipated benefits? Who are the top providers and where are they? Do they offer more than just cheap labor? How are successful relationshipshalfway around the worldset up and managed?" that are engaging the attention of CEOs. True, much of the current outsourcing spending is confined to the manufacturing sector, but the fastest growing areas are on the process side of the business in such activities as human resources, administrative services and finance and accounting. And insurance too is in a hurry to join the bandwagon.
Outsourcing has indeed become a global marketplace. In fact, many believe that companies not leveraging this emerging global talent pool will soon find themselves at a severe competitive disadvantage. If a CEO is tasked with payment of higher dividends to the shareholders or tasked with balancing tactical expense reductions with strategic growth initiatives, he has perhaps no option but to opt for outsourcing, to achieve immediate operational efficiencies and improve shareholder value by maximizing cost savings and transcending traditional market boundaries. |
