India has made a strong position for itself in the global outsourcing area. Today, India is a leading country in outsourcing delivery. Talented, experienced, and skilled professionals capable of handling complex projects are available. All these factors make India an ideal destination for insurance outsourcing.
According to reports, the insurance business process outsourcing market, valued at US$ 5,924.10 million in 2021, is projected to grow to 8,534.9 million US dollars by 2030.
Insurers aim to reduce overhead costs by outsourcing to India using its vast talent pool and lower prices. While the largest market segment for Indian vendors has been the US-based insurance companies, there is a shift to the UK and Europe, Australia, New Zealand, and many other countries.
Benefits of Choosing India as Your Outsourcing Destination
Save cost and reduce operating expenses
You can reduce your operating costs by 50% by outsourcing your insurance tasks. How? When you hire an in-house team, you will pay for buying/renting office space, office equipment, utility bills, etc. This is why outsourcing to India is a smart choice with low labor costs. You can ensure you get quality work and effective output with minimum investment. You can use the resources and costs to expand your business. Invest in the right technology, hire experienced employees, and allocate a reasonable marketing budget to enhance your online presence.
Focus on core business operations
One of the key benefits of insurance outsourcing is that it allows you to focus on your primary tasks that are vital for business success. You don’t have to spend hours performing back office and administrative tasks. We understand that keeping up with the evolving market trends is not easy. However, you can give complete attention to business expansion once you delegate all non-core functions to a trusted outsourcing partner.
Improves flexibility and scalability
With an in-house team, you will face difficulties when it comes to the scalability of your business. You may also find expanding your business or meeting deadlines challenging because the insurance landscape keeps evolving. Insurance outsourcing can help you manage specific tasks and gain an edge over competitors. They help you implement new ideas and strategies, improving productivity and final outputs.
Growth of the Insurance Outsourcing
The main reasons behind its growth are the economic liberalization policies undertaken by the government and globalization. More and more foreign companies are outsourcing to India to cater to the growing demand of consumerism and the rising market. The availability of skilled workforce and cheap labor rates have contributed to the growth of the outsourcing business in India.
With cost savings of 40% to 50% and other advantages, such as focusing on core competencies and access to skilled labor, the insurance business process outsourcing is poised for significant growth in the coming years. It is pertinent to mention that leading service providers in India are preparing today to win in tomorrow’s marketplace.