Outsourcing

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:

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