In a new addition to their offering – “Outsourcing in Insurance: Perspective 2006” – Dublin-based consultants Research and Markets concludes that, “despite recent strong results on both sides of the Atlantic, the majority of insurers continue to look to vendors to deliver IT and operational efficiencies rather than enable outright business growth highlighting the work still to be done in terms of achieving operational efficiency, in particular on the European side.”
The new study covers both North America and Western Europe and provides forecasts for outsourcing growth in European and North American insurance.
R&M notes that “tier-1 institutions are significantly more open to using off shoring as a tool to improve infrastructure efficiency, with nearly a fifth of respondents indicating that sourcing is the primary means of creating an efficient IT infrastructure.
“European insurers are far more positive to the role of offshore and outsourcing in infrastructure efficiency than their North American counterparts. While overall results are very similar on both sides of the Atlantic, European insurers that consider sourcing to be an option have a greater tendency to rate sourcing a primary efficiency driver.
“BPO has been growing steadily in acceptance over recent years, with a greater proportion of insurers now using BPO than infrastructure or application outsourcing. BPO has particularly high acceptance in the insurance sector, where institutions have traditionally used more third-party sourcing in core business processes.”
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