Choosing a reliable outsourcing partner is not easy and has to be done after careful thought and evaluating a host of parameters. This act is not a onetime one off decision similar to a business transaction with a supplier of goods. It usually is a start of a long term relationship based on mutual trust, confidence and capability. When it comes to seeking insurance outsourcing services, a greater level of caution is necessary. This is because it’s a question of dealing with client faith and belief placed on the parent insurance company, a part of which is transferred to the outsourcing partner along with outsourcing functions.
Before zeroing in on the ideal outsourcing partner, a number of crucial decisions have to be taken and a clear line of vision should emerge on what is expected from them. The process should start from defining the final result that is expected and then evaluating the services offered by various partners in the business. Having a clear cut idea about what is required goes a long way in selecting the best outsourcing partner. Here too the needs of different sectors so far as outsourcing is concerned will not be similar. The capabilities of an outsourcing company that can take in insurance back office support services will not be the same as say those that can handle IT, ITES or other BPO services.
Following a few broad guidelines can help in choosing the best insurance outsourcing companies. These are –
Partner’s Business Goals – Success in an outsourcing relationship depends a great deal on matching of business objectives and goals between the two. It is best to talk to the outsourcing partner about the insurance sector focus, evaluate if the partner has similar business goals and then decide if it is right for an outsourcing tie-up.
Experience and track records – The track record of the proposed partner needs to be researched, whether they have provided services of a similar nature and most importantly whether they can deliver the required scale of business. The number of years that they have been consistently catering to the insurance sector should also be looked into. A sure way of knowing this is to ask the proposed partner for samples or proof of projects undertaken in the past and whether it is compatible with the work that will be outsourced now. If it is insurance back office outsourcing it is necessary to know about the infrastructure that they have in place especially for security in computing and data processing.
Credentials and financial stability – It is critical to know if the outsourcing partner has the financial means and stability to sustain a long term relationship and whether they have the infrastructure in place to handle the scale of business that needs to be outsourced. For insurance outsourcing companies, a check should also be made on the credibility of the owners and directors to evaluate their standing and market reputation.
Hence, a thorough assessment should be made of the business model of the offshore outsourcing service provider before a contract is drawn up for a long term relationship.