Deciding What to Outsource?

Follow Principles of Dynamic Outsourcing for Insurers

Such information-intensive processes as new business, policy service, claims and billing should be on insurers’ outsourcing short list. Outsourcing these functions allows insurers to focus on growing their core business while reducing costs, achieving superior service levels and sustaining innovation in non-core areas.

“At CSC, we advise investing four to six weeks upfront in a three-phase process to prioritize processes and identify outsourcing candidates,” said Ray August, president of CSC’s Property and Casualty Insurance Division. “First, define your competitive positioning. Then baseline the performance of core and non-core processes, assessing the potential rewards and risks of outsourcing in terms of process, customers and employees. Finally, conduct detailed analysis and due diligence.”

Principles of Dynamic Outsourcing

Traditional outsourcing arrangements do not cope well with radical business and technology changes.

Even “successful” relationships rarely highlight innovation as their distinguishing feature. Increasingly, CSC and its clients are taking a new approach to accommodating and exploiting change. CSC’s Dynamic Outsourcing approach is built around five principles:

• Focus on business outcomes.
• Create a collaborative sourcing model.
• Align client and provider intentions.
• Build mechanisms for sustainable transformation.
• Ensure appropriate governance.

“By designing and managing relationships that focus on business outcomes and continuous transformation, CSC is creating more vibrant relationships over the long term,” said Michael Risley, president of CSC’s Life and Annuity Division.

Learn more about CSC’s Business Process and IT Outsourcing services for Insurance.