Dublin, Ireland – Many of the services required by businesses including human resources, billing and transactional processing, may be entirely peripheral to its core competencies, according to research from Dublin, Ireland-based Research and Markets. Using a business process outsourcing (BPO) provider can help reduce costs while at the same time allowing the enterprise to focus on its core business.
In fact, a March 2006 INN survey showed that insurers are outsourcing more than ever, and the primary reason insurers outsource business is to cut costs, followed by to obtain technology, skills or knowledge and to focus on core business.
"BPO in North America" from Research and Markets is detailed information covering current and forecast BPO services market data. The market is sized in BPO spend and the data is segmented by BPO service type, industry vertical, region and country.
Research from Cambridge, Mass.-based Forrester Inc. also supports the idea the BPO is increasing. Forrester's report, "Process-Oriented Insurance Will Drive BPO," suggests insurers implement specialized project teams with process and sourcing expertise, use frameworks like Six Sigma and deploy systems that provide the flexibility to accommodate local needs without complex development efforts.
Forrester states the use of IT outsourcing and BPO is slowly growing. The report cites a 2006 survey of North American and European businesses in which 64 IT decision-makers at insurance companies and 1,000 IT decision-makers across all industries were asked if they consider IT outsourcing or BPO to be a key part of their strategy. More than half of the insurance respondents (55%) and 66% of all industries respondents said no. Also when asked whether they expect IT outsourcing or BPO to be a bigger part of the company's strategy during the next two years, 58% of insurance respondents and 66% of all industries respondents said no.
Source: Research and Markets, Forrester Inc. and Insurance Networking News
