BPO Cools to a Simmer: Insurers and Expectations for Adoption

by Tom Scales, November 10, 2015
Industry Trends
North America

Abstract

Celent researches the usage of business process outsourcing (BPO) and plans for the future.

In the report BPO Cools to a Simmer: Insurers and Expectations for Adoption, Celent refreshes research conducted in 2004 and 2010. In this report, Celent provides side-by-side comparisons to the data from the report Approaching the Boiling Point: BPO, SaaS in Insurance, published in 2010.

The analysis covers a broad view of the topic, and comparisons are made on three primary topics:

  • Actual usage of BPO in insurers.
  • Attitudes towards the use of BPO in insurers.
  • Plans for the future use of BPO in insurers.

"In our discussions with insurers, the use of BPO is always a popular topic. Insurers want to know what others are doing," says Tom Scales, a research director with Celent’s Insurance practice and author of the report. “By surveying the market, we have real data behind the industry’s views rather than just anecdotal discussions. It’s clear that the insurers are pulling back from previous levels of excitement.”

“The use of BPO is common, but the growth curve of usage has slowed,” says Craig Weber, Celent’s CEO and author of the 2010 report. “While not surprising, we see continued opportunity in the market.”

This 30-page report contains 17 figures.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned subsidiary of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

1

 

Key Research Questions

1

Introduction

2

 

Key Research Questions

2

Survey Methodology

3

Views on BPO

4

 

Attitude Towards BPO

4

 

Experience with BPO

6

 

BPO Plans

7

 

BPO Areas of Concern

9

 

Drivers for BPO

11

 

Expense Savings

12

 

Vendor Capability

13

 

Selection Criteria

15

Willingness to Use BPO

16

Conclusion

17

 

Observations

17

 

Recommendations

17

Appendix

19

 

About the Insurers

19

 

About the Respondents

20

Leveraging Celent’s Expertise

23

 

Support for Financial Institutions

23

 

Support for Vendors

23

Related Celent Research

24

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