The Cost Of Insurance Application Outsourcing In 9 Countries

Outsourcing is getting more and more popular, especially in the case of insurance. A recent research by Everest Global Inc. clearly reveals the number insurance-application outsourcing (AO) didn’t just grow but more than doubled in 2012. The research also highlights the cost of insurance application outsourcing in 9 countries from across three different regions of the world.

According to the report, the demand of Insurance AO will continue to rise with estimated 75 large deals worth a total of $7.6 billion coming up for renewal between 2012 and 2017.

The below figures represent why many North American companies are choosing to provide AO services to these countries and what is the average cost to these companies. [@PCITplus]

Insurers Prefer Outsourcing Over Cost Reduction, Says Report

Research reveals boost in technology and business outsourcing owing to increased focus on customer experience and risk management by insurers

According to studies conducted by Everest Group, in 2012, information technology outsourcing (ITO) and business processing outsourcing (BPO) in insurance have witnessed growth of 18 and 15 percent respectively. Cost reduction is no longer the main focus. Companies, while doing outsourcing, are stressing on enhancing company technology.

The reports were prepared after analyzing the current market trends and predict the future of outsourcing relationships. The reports clearly highlight insurers’ need for strategic partners who can help with developing solutions that will boost efficiency and keep up with new technologies. [@PCITplus]