ANALYSIS Nearly half of insurers currently use at least one BPO Claims and policy administration BPO will be among the fastest growing BPO areas CRM remains the most developed area in terms of advanced sourcing strategy Cost based benefits no longer dominate sourcing agenda Key drivers for BPO take-up Vendor selection criteria Eastern Europe, Canada and South Africa are the key emerging BPO sourcing destinations Offshore outsourcing drivers Offshore drawbacks: is there a threat to continued growth?
METHODOLOGY Further reading Ask the analyst
List of Figures Figure 1: Nearly half of insurers currently use at least one BPO service, Q2 2006 Figure 2: Insurance specific BPO looks set to grow fast over the next two years, but interest remains strong in key horizontal BPO areas Figure 3: Three of the top four areas of outsourcing in the insurance industry remain non-industry specific Figure 4: Insurers aim to focus on core competencies and to make their cost based more responsive to revenues by variabilising costs Figure 5: Geographic reach and technology leadership are the most important selection criteria Figure 6: What countries/regions would you consider most seriously were you to offshore any service? Figure 7: Cost and labor pool access are secondary drivers to language skills and government subsidies Figure 8: Bad PR and lacking government incentives are seen as the key downsides of outsourcing
