India has made a strong position for itself on the global outsourcing area. Now, India is a leading country in outsourcing delivery. Availability of talented, experienced and skilled professionals capable of handling any complex project makes India a favorite destination of outsourcing in Insurance Industry. Many companies try to reduce their overhead cost by outsourcing to India by making use of its huge talent pool and lower cost. While the largest market segment for Indian vendors was the US-based insurance companies, however now there is a shift to UK and Europe, Australia, New Zealand and many other countries.
What has India to offer?
Several service providers in India with relevant insurance expertise are emerging, encouraging foreign insurance companies to outsource more value-added services. There are a number of reasons why more and more foreign companies are outsourcing insurance services in India. Some of the main advantages of India, as an outsourcing destination are a flexibility, technological competence, quality output, cost control facilities and much more. Such service providers are adept at working with people, handling the clients in a friendly and time – bound manner, so as to ensure the best results for the insurance company. They are also providing hassle – free customer care service which is very vital for the insurance company.
India as an outsourcing service provider has much to offer the industry. It is already an established outsourcing destination for a variety of services. It enables the insurance company to reduce operating costs, getting the access to specialized skills, offload the non-core functions for greater management and focus on core competencies and reduce the overall management burden while retaining control of strategic decision making. It also gets benefit from the service provider’s expertise in solving problems for a variety of clients with similar requirements.
As there is tough competition in the market, and all the companies are providing more or less the same kind of deliverables, service providers in India go beyond the cost saving alone to differentiate themselves on value added services. The key approach is to improve operational efficiency in minimum time to achieve the targets keeping the cordial relations with the clients.
Growth of Insurance outsourcing industry
The main reasons behind its growth are the economic liberalization policies undertaken by the government and the globalization. To cater to the growing demand of consumerism and the rising market, more and more foreign companies are outsourcing to India. The availability of skilled manpower and cheap labor rates have attributed 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, we believe that 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 the marketplace of tomorrow.
