UNDERSTANDING OUTSOURCING - A STRATEGY FOR INSURANCE COMPANIES

Today's threatening, rapidly changing environment requires insurance companies to reevaluate their business strategies to survive competitive turmoil. Often, the challenge to meet evolving market demands presents obstacles an insurance company cannot overcome alone. In this situation, firms are increasingly considering outsourcing as a strategic option. This article looks at what outsourcing is and how it has been used at a Midwestern insurance company to increase its efficiency in the information systems arena. Plus, it discusses how to build the outsourcing partnership and what the benefits of outsourcing are, and explores four key elements necessary for effective outsourcing implementation.