Sourcing Services
Outsourcing has gained sufficient maturity in the Financial Services sector to make it a real strategic option as a building block in the operating model.
The Retail Investment Sector is the most mature with 80% of back offices run through an outsourced partner.
General Insurance companies have multiple arrangements from front to back office including FNOL, loss adjusters, administration, call centres and claims management.
Outsourcing of IT led the third party sourcing in the Life industry with full business process outsourcing building very strongly since 2000. This has been driven particularly by the volumes of closed books seeking effective and efficient management of the declining business.
Our advice covers:
Identifying options
Our ideal starting point is to understand the business model and objectives and explore suitability of sourcing options to fill gaps in the existing operation. The gaps dimensions explored are:
- Costs
- People/skills
- Infrastructure
- Flexibility against requirements
- Timescales
The results of this analysis allows the management team to make an informed choice on how to deliver the services required to support the business. Should this be outsourced services or in-house the analysis gives a clear blueprint for the business to work from.
IT Outsourcing and Business Process Outsourcing
Through the many processes we have run we have a tested approach to identifying the optimum balance between in-house and outsourced operations. This takes the client from strategy definition through to supplier selection and contract negotiation.
Outsource User Group
This user group formed in 2002 comprises Life and Pensions companies that have outsourced a significant proportion of their business processing. The group meets to discuss current industry issues and the impact they have on outsourced books of business.