When discussing about the evolution of the Insurance Process Outsourcing Industry it becomes imperative to learn how technology became a strong tool to promote outsourcing for fresh markets.
Technology- The Necessity Developer.
Over the last two decades, technology has been a massive influencer for any type of business to develop and expand. It ushered the era of business process outsourcing, which was earlier only reserved for the bigger players of the insurance business. Technology brought it to equal footing making BPO available to the broader insurance base.
Seamless Communication- Key to Successful Outsourcing
It is even scary to recall how work progressed in the non-technological phase of the insurance business as a mere phone call was also charged exorbitantly. Communication via phone was the only available option at the time and Business Process Outsourcing was lucrative only for the bigger companies who had greater volumes of work which made the investment cost effective with the availability of a distributed highly educated and inexpensive workforce for managing the back office functions. However things changed with the emergence and convergence of the three technologies namely, email, broadband and cellular network. The convergence of which turned Business process outsourcing a viable option for all industries including Insurance industry.
Growth In Relevancy- Plummets Outsourcing Demand.
Once companies realized the financial advantage of outsourcing and agreed to offer BPO services to their bigger professional service clients, efficient communication no longer was considered a cost factor of concern, outsourcing became a popular solution to consider for big small and medium enterprises.
A thriving and successful Insurance BPO is always indebted to technology as an enabler and creator for business conditions as it made outsourcing cost effective. New drivers of change made IPO an increasingly attractive solution that went way beyond the norms of savings on labor expenses.