Outsourcing business processes shouldn’t be just about cost-cutting. Eight ways to turbo-charge your business process outsourcing.
Insurers have been outsourcing a range of functions and business processes for a long time, of course, but the motivating factor has typically been all about reducing cost. Reducing cost is always a good thing, I think we can all agree, but there’s much more to outsourcing—particularly of operations or business processes—than that.
This is particularly true now, when insurers face a total realignment of their value chain. This realignment is being driving by a massive change in the customer landscape, as well as the competitor landscape, as I previously explained. The only response is radical customer-centricity which will require digital transformation—the reason why so much money is being invested in it within the insurance industry.
Digital transformation, though, is easier said than done because, in Accenture’s view, it requires a totally new business model that enables the flexibility and agility to respond rapidly to ever-shifting customer demands. This in turn means a totally new way of looking at procuring and maintaining the technology to make this possible.
Outsourcing operations, I believe, offers one way to shorten the journey to becoming a digital insurer because it can release the insurer from the straitjacket of lengthy, expensive and fundamentally inflexible IT projects. By starting to see the outsourcing provider as a strategic partner, insurers can gain the kind of flexibility and up-and-down scalability that they will need to prosper in a world driven by volatile customer demands.
They will also gain the input of a whole range of specialist skills and insights, both technology- and industry-related, as and when needed.
Time to take a fresh look at outsourcing in the light of the urgent drivers for digital transformation in the quest for profitable growth!
For more on this topic, why not read Turbocharge your Insurance BPO: Eight Ways to Drive Profitable Growth by Outsourcing?