Although insurers have leveraged offshore operations for the last two decades, many have grown unhappy with their performances–the quality just isn’t justifying the cost. That being said, there are a number of challenges posed by managing an offshore resource that don’t typically upset performance onshore: deficient work quality and unclear processes for improvement, inadequate issue resolution, poor lines of communication, and unclear or ineffective management, among others.
While offshoring in the insurance industry is an incredibly costly and complicated process, these are problems insurers need to address now if they are going to maximize the value of their offshore resources. If done right, offshoring can produce a significant return on investment.
Three big areas requiring attention include leadership, including its strategy, structure, and talent pool; training and a means of measuring team progress; and creating opportunities to perform meaningful work. Most large insurers are global enterprises equipped with a vast talent pool that wants to learn, grow, and receive recognition for their contributions. Modeling effective leadership and developing that talent is key. Additionally, training processes must be considerably improved to raise the bar and produce quality output, along with means of measuring that progress. Lastly, offshore organizations want to add value and feel that their contributions are real with positive effects for the greater organization. Creating opportunities for talent to perform meaningful work is paramount, contributing to a motivated and invested workforce with a real stake in the success of the insurer. This will result in improved recruiting efforts and lower attrition rates.
There are a number of steps insurers can take to improve offshoring in the insurance industry. For more on optimizing offshore resources, see our recently published CIO Checklist, Maximizing the Value of Offshore Resources.
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