Before going into why it makes sense to outsource insurance back office services to India, it will be relevant to know what Business Process Outsourcing actually is. BPO is outsourcing a portion of a company’s operation to a third party who in turn can offer a seamless transition and carry on from where the company left off. You can further segregate this into two categories – front office and back office outsourcing. The former includes core tasks such as customer service and sales of products and services, while the latter encompasses finance, accounting, human resource management, and other similar administrative functions.
So far as insurance support services are concerned, emphasis in this sector has traditionally been on insurance back office outsourcing. This is apart from the other activities that form a part of insurance outsourcing services. Information technology-based outsourcing mainly includes data processing and commission management, as well as knowledge process outsourcing (KPO) and legal process outsourcing (LPO).
Why Outsource to India? Unveiling the Benefits of Offshore Insurance Back Office Services
Top of the line services – India has made significant strides in infrastructure development, leading to a proliferation of IT-based insurance outsourcing companies equipped with state-of-the-art hardware and software. These firms offer offshore insurance back office services that are on par with the world’s best.
Human Resources – India has a vast pool of talented human resources as good as anywhere in the world. They work with advanced tools and technologies that not only results in a higher level of performance and efficiency; it also results in lower costs due to a quicker turnaround of outsourced work.
Cost efficiency – Insurance back office outsourcing to India is definitely a cost effective proposition for offshore companies seeking insurance outsourcing services. This is due to a number of factors. First, insurance outsourcing companies in India are not manually intensive and hence there is quick processing which saves on cost. Secondly, these companies offer multi-sourcing solutions that guarantee optimum pricing of any outsourced task. And finally, workers with high skill levels and training ensure that results are customized for different clients. By providing tailored solutions and avoiding the need to adapt to standardized formats repeatedly, the company keeps costs competitive on an international scale. This approach allows for cost-effective operations.
A difference in Time Zones – One of the main advantages of insurance back office outsourcing to India is the difference in time zones with other countries. This ensures that any work to insurance outsourcing companies in India is completed and ready outside office hours in those countries. This allows a seamless flow of work around the clock between the outsourcing insurance company abroad and the outsourced company in India.
Therefore, we see that a combination of factors, including skilled manpower, advanced IT infrastructure, and cost-effectiveness, make India an attractive destination for outsourcing insurance back office services.