Can insurers truly achieve competitive advantage through outsourcing? Accenture research shows that it’s possible—and more than that, insurers who use business process outsourcing (BPO) as an integrated part of business strategy report 17 percent more benefits than those who don’t.
The benefits of BPO
Accenture’s ongoing research into the characteristics of high-performance businesses has shown that the outsourcing mastery is a characteristic of high-performing insurers. These high performers have industrialized and developed alternative sourcing faster than their competitors.
Strategic use of BPO enables rigorous, repeatable, high-quality methods and technologies that can be applied anywhere around the world. It includes a blend of onshore, offshore and near-shore models. The resulting industrialization enables operational excellence.
The benefits received by companies that consolidated their platforms using BPO. On average, the high performers reported benefits 17 percent greater than those who didn’t use BPO.
And what does that benefit mean? It means being able to scale the business while cost-effectively tailoring offers and interactions with customers. It also means the ability to choose, sustain and deliver a distinctive strategy, which is an important way of sustaining the business across boom and bust cycles.