Novarica benchmarking research has found that insurers spend an average of 16% of their total IT budgets on external staff and services. Our work in this area focuses on helping insurers understand the benefits, challenges, and other strategic and tactical issues related to embracing blended sourcing.
Our research covers traditional ITO, blended sourcing, and what we call BPO/VICO (“Business Process Outsourcing/Virtual Insurance Company Operations”), which focuses on vendors that provide specific insurance operations like claims processing or core administration rather than cross-industry BPO functions like finance or HR. We even traveled to India to research several providers first-hand.
Some of our recent published reports in this area include:
- Outsourcing in US Insurance IT: Current State and Future Plans
- Increasing the Odds of Offshore Success: Best Practices in Business Process Outsourcing (BPO)
- Novarica Market Navigator: Insurer IT Services Providers 2011 (Q4)
- US BPO/Virtualized Insurance Company Operations: Property and Casualty 2011 (Q1)
- US BPO/Virtualized Insurance Company Operations: Life/Health/Annuity 2011 (Q1)
- IT Outsourcing by US Insurers: Current State and Plans for the Future
- Best Practices In Agile IT Staffing
- Insurer Outsourcing Decision Framework
- Insurer Outsourcing Governance Framework
Our consulting work in this area has included development of agile staffing plans and evaluation of services providers for insurers.
You can read our recent blog posts on this topic at http://blog.novarica.com/?category_name=outsourcing