Posts Tagged ‘Insurance’

Tieto, If P&C Insurance sign EUR160m IT outsourcing contract

June 28th, 2010

Finnish insurer If P&C Insurance Holding Ltd, part of insurance and financial services group Sampo (HEL: SAMAS), has agreed to outsource its IT operations in the Nordic countries for five years to Finland-based IT consultancy Tieto Oyj (HEL: TIE1V), in a deal worth some EUR160m.

The co-operation between If and Tieto goes back to 2001, and at that time it covered only Finland, Tieto said today, adding that, during 2005, the co-operation expanded and If outsourced its server operations and end-user services in the Nordic countries.

The five-year delivery will be made in co-operation with Norwegian IT company Atea ASA (OSL: ATEA), which will contribute as a subcontractor on client services in end-user services, Tieto said today

Source:http://www.tradingmarkets.com/news/stock-alert/tcybf_tieto-if-p-amp-c-insurance-sign-eur160m-it-outsourcing-contract-1008470.html

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Cognizant eyes insurance BPOs

June 13th, 2010

Refining its inorganic growth strategy further after carrying out acquisitions in consulting and analytics areas down the years, Cognizant Technology Solutions is understood to be scouting for business process outsourcing (BPO) firms specialising in insurance in the US and Europe.

The Nasdaq-listed company is looking to acquire companies handling back-office operations for US and European clients, primarily in insurance support and related operations, according to an investment banker who spoke on condition of anonymity. Such a move is expected to strengthen Cognizant’s insurance practice, which has focused primarily on the property and casualty insurance industries.

Cognizant is understood to be targeting BPO firms with revenues in the $5-50 million range this year. When asked, a spokesman said the company was always open to new acquisition possibilities, but declined to comment on any speculation to that effect.

Within the ambit of property and casualty insurance, Cognizant has been offering back office and front office solutions in the areas of claims processing, document management, policy administration, regulatory, reporting and solution frameworks, among others.

Most of the 85,000-plus employees and 50 development centres of Teaneck, New Jersey-based Cognizant are in India. The company, which offers BPO and consulting services, is seen by analysts as one of the key beneficiaries of the sharply rebounding $60-billion Indian outsourcing market.

Cognizant’s net profit for the quarter ending March 31 rose to $151.5 million (Rs 660 crore), up 34 per cent from a year earlier and 5.2 per cent quarter-on-quarter. Revenues for the first quarter rose to $959.7 million (Rs 4,222 crore), up 28.7 per cent from $745.9 million (Rs 3,278 crore) in the first quarter of 2009. Revenues in 2009-10 are expected to be at least $4.1 billion (Rs 18,860 crore), up by at least 25 per cent over 2009.

Cognizant has carried out eight acquisitions since 2005, including that of the UK-based program management consultancy, PIPC Group. PIPC was acquired last month for a little over £23 million pounds (Rs 154 crore). In 2009, Cognizant had acquired Pepperweed Advisors, the information technology consulting services division of US-based Pepperweed Consulting, for an undisclosed amount.

Source:http://www.business-standard.com/india/news/cognizant-eyes-insurance-bpos/398016/

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US healthcare reform is boon for India outsourcing companies

March 26th, 2010

The US healthcare reform law creates much more paperwork for insurance firms – and plenty of new business for Indian outsourcing companies.

With 22 pen strokes, President Obama signed into existence not just a historic healthcare reform law but also monumental piles of paperwork: New member registration forms. More claims. Ever-expanding databases. And on top of that, pressure to cut costs.

The bulge in administrative work may look like a nightmare to American insurance firms and government employees. But to outsourcing executives here in India, it’s heaven-sent. A number of Indian companies are already anticipating an increase in workload thanks to Obama’s healthcare law.

The addition of 32 million insured Americans is “very significant” for Indian outsourcers, says Ananda Mukerji, chief executive officer of Firstsource Solutions in Mumbai. Companies like his will see “increased opportunities” as US health insurers and hospitals scramble to reorganize to comply with the new law, he wrote in an email to the Monitor.

This extra work will include processing new enrollments, organizing bigger member databases, processing more claims, providing more support services, and managing more revenue, he says.

In particular, outsourcers can expect to benefit from insurers’ need to minimize administrative costs, Mr. Mukerji says, citing a recent Deloitte Center for Health Solutions study showing that up to 41 percent of the cost of a health plan is administrative.

The US healthcare reform offers a “natural extension” of the back-office outsourcing that Indian companies already specialize in, says Tu Packard, a senior economist with Moody’s Economy.com.

Outsourcing comes to America

But some services in the US healthcare industry cannot be outsourced beyond America’s borders due to regulations. That’s one reason major Indian outsourcing firms have set up shop in the United States. In a twist, America’s outsourcers are now outsourcing back to America.

In 2008, Bangalore-based Wipro opened a development center in Atlanta that employs 500 people, mostly Americans, and runs a call center for a US healthcare client. Tata Consultancy Services has set up a similar campus with 300 employees near Cincinnati. Infosys is planning a subsidiary in Dallas that will hire locals and seek US government contracts.

Wipro, one of the world’s biggest information technology firms with nearly 100,000 employees worldwide, says the new healthcare law dovetails with two of its focus areas: servicing governments and servicing the healthcare industry. “The healthcare reform should translate to more demand,” says Rajiv Shah, Wipro’s senior vice president for healthcare.

Wipro plans to double its workforce at the Atlanta office by 2013 and open campuses in other cities, says Suraj Prakash, a vice president at the company. “There will be enough work to be done in the US.”

Source: http://www.csmonitor.com/World/Asia-South-Central/2010/0325/US-healthcare-reform-is-boon-for-India-outsourcing-companies

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IT outsourcing popular among insurers in Asia Pacific: IDC

October 30th, 2009

Insurance carriers in the Asia Pacific are known for their reluctance to spend on IT but the latest report from IDC Financial Insights indicates a change in scenario. The increasingly challenging marketplace is encouraging insurers to forego the tendency to look inwards rather than outsource.

IDC Financial Insights is a research and advisory firm in the Asia Pacific. It is dedicated to help clients select or short-list vendors, assess their IT master plans, and devise business and operational best practices.

The firm says insurers in this region are becoming more aware of the benefits of outsourcing technology. They now realise the importance of outsourcing for competing in today’s challenging marketplace.

Change driven by economic slowdown

The ongoing global economic crisis has given these insurers a major push towards IT outsourcing. These insurance vendors have realised how tough it is to survive in a changing business environment and understand the need to create a more dynamic business framework through the assistance of technology.

These findings are revealed in IDC Financial Insights’ study “Insurance Vendors: Spotlighting the Major Players in Asia/Pacific.” This document assesses the leading insurance technology vendors in this region.

This report focuses on three enterprise-wide technology firms: CSC, IBM and SAP, and six insurance technology firms: 3i Infotech, Cognizant, EAB Systems, eBao Technologies, Mastek and Perot Systems.

The study includes their strategic objectives; approach to product development, deployment and support; value proposition and competitive differentiation; market footprint and client profile; and, overview of major products. In addition, it provides IDC Financial Insights’ assessment of the strengths and limitations of these vendors.

According to Li-May Chew, CFA, senior research manager for IDC Financial Insights Asia Pacific, each company has a unique value proposition, and compete through their different products, services and solutions.

While CSC is known for their large installed base with commendable end-to-end reach, IBM is appreciated for its high commitment level to the industry and vast ISV ecosystem of business partners.

“Among the InsTech organisations, 3i Infotech has a laudable front-end solution that addresses the full spectrum of insurance functions, and eBaoTech is viewed as being an aggressive company that has excelled at building brand awareness,” added Chew.

Source:http://news.idg.no/cw/art.cfm?id=A1D1C08A-1A64-67EA-E49F5AA79A216588

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“Outsourcing” IT to End Users: Is There an App for That?

October 21st, 2009

Forget the economic downturn—Apple Computer is hotter than hot.

In its fourth-quarter earnings report released this week, Apple, with its Mac computers and iPhones, reported fourth-quarter sales of almost $10 billion, up almost 25% from the year ago quarter. For the fiscal year, the company reported earnings of more than $36 billion, up 12% from last year.

What does this mean to enterprises? Right now, on the surface, not much. But the long-term implications may be enormous.

Unlike most other large vendors in the IT space, Apple’s success is not built on enterprise IT adoption, but on individual sales. Apple is very much a consumer device and computer provider. However, the runaway success of such mobile devices mean companies need to start making choices in terms of what direction they want to take IT.

There’s been growing talk, in fact, of IT departments getting out of the business of end-user computing and leaving end users to make their own decisions, even to the point of bringing their own hardware into the workplace. Gartner analysts David Mitchell Smith and Tom Austin said as much at the recent IT Symposium, said it’s high time IT was outsourced—to the users.

IT has been expending time and energy trying to hold off the tsunami for years—attempting to lock down systems and regulate the types of devices that are used to get their organizations’ work done.

You can see the productivity benefits IT would see as a result of this shift of responsibilities. IT can focus on back-end integration work, service-oriented architecture and even cloud computing.

But there are organizational benefits as well. I like the way Bob Lewis put it in a post last year: Leave it up to the end users to supply their own computers on the job, and their productivity would flourish. Users need to be unleashed to get their jobs done with the tools they see fit.

So why not let employees do their thing with their own PCs and smartphones? As Lewis put it, “no corporate-owned PCs at all. Let employees buy their own — whatever they think they need to do their jobs … Only central IT remains. Employees take over ownership of the periphery, including responsibility for their own PC support.”

IT is more productive, and employees are more productive; what’s not to like? We already know the self-service ethic is a winning approach for many companies. Insurers have seen tremendous gains thanks to self-service portals for agents and consumers. Self-service portals for employees are also gaining traction in the industry. Why not self-service IT?

We already see plenty of instances of employees using their own mobile devices for work-related connectivity. And, countless users log in from their homes to check into the intranet or for updated communications. Gartner even suggests that it would be far cheaper to simply provide employees a stipend to buy their own machines rather than attempt corporate-level purchases.

Of course, there are data security issues that need to be worked through—there will need to be more thorough date encryption strategies, for example. Lewis suggests that virtualization—having end users accessing virtual environments versus actual production environments—may be the way to secure back-end systems a little better. This is especially an acute issue for insurance carriers. But at the same time, there is a great opportunity for mobile workers, such as field claims adjusters.

Source : http://www.insurancenetworking.com/blogs/insurance_technology_outsourcing_IT_end_users_Apple-23422-1.html

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6 Indian cities among 8 top global destinations for outsourcing

October 21st, 2009

Bangalore, Delhi NCR, Mumbai, Chennai, Hyderabad, Pune – are among the eight top global destinations for outsourcing of services, according to a new survey released Tuesday.

The other two are the Philippines’ Manila NCR and Ireland’s Dublin city, according to the 4th Global Services-Tholons Top 50 emerging outsourcing destinations survey, jointly done by Global Services from CyberMedia and Tholons, a services globalisation advisory firm.

The Next 10 Outsourcing Destinations considered to be ‘Top 10 Aspirants’ from a total of 68 destinations is dominated by China’s Shanghai, Beijing and Shenzhen, Vietnam’s Ho Chi Minh City and Hanoi, Poland’s Krakow, Argentina’s Buenos Aires, Egypt’s Cairo and Brazil’s Sao Paulo.

Avinash Vashistha, CEO of Tholons says: “For a CIO today, finding a Centre of Excellence is more than just lower cost. It must consider location, risk mitigation for business, cultural affinity and scalability of the skilled workforce.”

“The service providers need to think through their offerings so as to differentiate as the competitive advantage is rapidly vanishing due to cut throat competition and market saturation,” adds Vashishtha.

India continues to top the list with revenues of $40 billion in IT-BPO export services in 2008. Indian IT-BPO export services posted 35 percent year on year growth rates in the last five years.

nterestingly India’s FDI inflows posted the largest increase globally at 46 percent in 2008 — from $25 billion to $46 billion even as global FDI flows decreased from $1.9 trillion to $1.7 trillion and several developing economies struggled to acquire investments from client nations.

Compared to the previous year’s rankings, this year’s study reveals minimal shifts in rankings because of the overall slowdown in the pace of outsourcing activity in the face of global recession.

Seven Chinese cities – Shanghai, Beijing, Shenzhen, Dalian, Guangzhou, Chengdu and Tianjin – and six Indian cities – Chandigarh, Kolkata, Coimbatore, Jaipur, Bhubaneswar, Thiruvananthapuram – make it to the list of next 60 outsourcing destinations.

The study lists India, Philippines, Ireland, China and Brazil among Top 5 Offshore Nations “with a high degree of maturity and record of successful delivery capabilities.”

Canada, Russia, Mexico, Vietnam, Poland are listed as Top 5 Emerging Nations. The difference between the Top 5 and the Next 5 offshore nations is most pronounced in the service level maturity, the study said.

Source : http://economictimes.indiatimes.com/infotech/ites/6-Indian-cities-among-8-top-global-destinations-for-outsourcing/articleshow/5142714.cms

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