Four tips for successful outsourcing - Procurement Blog - Procurement Leaders™
7 Easy Tips for a Successful Outsourcing of Your Business Tasks milestones is the best way to develop a productive working relationship. 7 Keys to Successful Software Development Outsourcing 1. Relationship is as important as technical requirements and capabilities 7. 3x ROI . “I wrote a blog post about it: The Seven Ways an Indian Programmer Says 'No. How to improve you outsourcing relationship. How to do the difficult work of harnessing human nature for outsourcing success. 15 ways to advance your IT career · 7 habits of highly effective digital transformations.
However, for smaller companies such as small and medium sized insurance agencies, outsourcing can be a valuable, even critical tool to facilitate cost-effective growth and stimulate productivity, particularly when experienced staff are hard to find or expensive to hire. Imagine insurance underwriters and producers spending time on routine data entry, rating, invoicing, ordering and reviewing inspections and MVRs, generating loss runs and issuing policies.
Experience shows that it is far more profitable to deploy them on new business development and renewals—activities that require high-level interpersonal skills and risk control judgment.
The following seven lessons address these critical issues and represent steps that all small and medium-sized agencies should go through when conducting due diligence on insurance process outsourcing. Outsourcing is about growth, not downsizing. They outsource to innovate faster and more cheaply in order to grow larger, gain market share, and hire more and different specialists—not to save money by firing people. By outsourcing routine tasks, agency costs are reduced, liberating resources that can be deployed more productively.
Keep control of your systems and security. In traditional business process outsourcing, companies offer cost savings by shifting you onto their agency management system, which they can operate faster, quicker and cheaper than you could do yourself.
Seven commandments of successful outsourcing
The problem is that if the relationship falters due to price increases or a decline in the quality of service, your agency is stuck, lacking both the systems and the people to run your critical back office functions.
A new approach is to have the outsourcing company connect remotely to your system, learn your processes, follow your procedures and essentially become an add-on to your agency. The same way you connect to your server from home, they can do from their offices. All the information stays on your server and can be monitored daily by your managers. Should you ever decide to end the relationship, you can change your password to maintain exclusive control and access to the system.
Prime Outsourcing Blog
Outsourcing can be a powerful tool for improving efficiencies and costs, but you should always keep control of the keys to your information and system security. There are a number of key elements to assure effective communications between your service provider and your home office. Go with an industry specialist rather than a generalist. This means choosing a service provider that understands the operational challenges and objectives specific to your kind of insurance agency.7 Ways a Relationship with a Narcissist or Borderline Ends
Make sure your service provider has its corporate head office or at least a fully functional branch office located in the United States.
The more information you can provide to an outsourcing company about what you are hoping to achieve — the higher your chances are for satisfaction. However, be critical about your scheduling and lead time requirements because it can impact overall costs.
Look for the portfolio of your outsourcing portfolio If you are looking someone who can outsource software development, ask to review previous projects of current and past clients along with references. If the vendor wants to collaborate with you, they will make an effort to meet your needs big or small. Set up your goals Creating a precise project plan with time-bound milestones is the best way to develop a productive working relationship. Ideally, you will review the project checkpoints and make associated payments tied to each completed milestone.
This is an essential planning tip if you want your project to meet requirements, and receive timely revisions if needed.
Always keep your record Everything may change during the process of your collaboration. Make sure you and your service provider have come to an agreement on the scope of the project, the working schedule, and payment. Most importantly, make sure you have done all of this in writing.
Also, keep a change log or record of all adjustments that take place and save copies of email exchanges.
Seven tips for successful insurance process outsourcing
Always have the communication How well does your new outsourcing partner communicate? Do they offer a key project point of contact or are you dealing with multiple members of their staff?
It is crucial that employees of an outsourced vendor can effectively communicate with you and your team.