The IT Outsourcing Switch for Insurers
The focus of outsourcing used to be on cost reduction, but, in recent years, the focus has been shifting towards the improvement of company technology. According to a study done by Everest Group, the amount of Insurance agencies that outsource their IT needs began to increase in 2012 by 15 to 18 percent. This number has steadily increased each year.
When it comes to technology, small businesses do not have the time or resources to spend on figuring out simple IT issues. This used to be the main reason insurance companies would use IT Outsourcing. Now agencies are wanting to keep their technology up-to-date. Being able to reach your agent, or file a claim whenever and wherever you want is the new normal. With the world of technology expanding each day there are so many different devices that are connected to so many different networks. This raises the issue of whether or not these devices and networks are secure enough to be exchanging sensitive client information over.
Insurance companies today are not happy with the old solutions that have been in place for decades. In order to increase efficiency, agencies should partner with companies like Centric to create solutions propelling them into the future. According to the same study done by the Everest group, the rise in ITO is due to the rise in use of social media platforms, analytics, consumer behavior predictions, and mobile devices. When an insurance company wants to improve they have to find ways to enhance customer experience, provide low premiums and boost their daily productivity. By using IT Outsourcing, agencies are enabling their offices to be prepared for tech advancements and open to new solutions that are coming from the ever changing business environment. Also with outsourcing, agencies can reduce expenses which enables them to invest funds into technology advancements!
IT outsourcing is about enhancing customer experience and enabling agencies to move forward without having to completely uproot their current business processes. According to Rajesh Ranjan, VP of Everest group, the number of agencies that are outsourcing will continue to increase and the ones that already do outsource will continue to increase their scope of activity.