Organizations lack critical cloud computing skills such as assessing the risks associated with cloud computing and managing cloud initiatives, according to a new KPMG Sourcing Advisory report. The data was based on a survey of more than 400 KPMG consultants working on cloud-related projects for customers, as well as from top executives at more than 20 other global business and IT service provider, said Stan Lepeak, research director in KPMG’s shared services and outsourcing advisory group. Read full article at Insurance Networking News. … Read more »

With a preference for service-oriented architectures (SOA), the U.S. market is the furthest ahead in deployments of SOA-based policy administration systems, but companies in other parts of the world are starting to catch up – and even leapfrog over traditional approaches. Defined by its open communication standards, SOA promises to dramatically reduce integration and development costs in the long term, though there may be a short-term cost associated with the initial conversion. Read full feature-length article at Insurance Networking News. … Read more »

Article originally published in Insurance Networking News. Patrick Snowball, executive director of Aviva UK, flew down to Mumbai, India in February to accept an award from the Indian software industry. But India’s National Association of Software and Service Companies (NASSCOM) wasn’t lauding the insurance giant for the jobs it was moving to outsourcing firms on the subcontinent. Instead, Aviva was recognized for taking jobs back. The previous month, Aviva transferred 1,600 employees in Bangalore from an outsourcing vendor, 24/7 Customer, to Aviva Global Services. It was the first move of its kind and size in the Indian business processing outsourcing industry, NASSCOM said. When a vendor creates a call center for a company, runs it for a certain period of time, then hands the operation over to the company, it’s called the build-operate-transfer … Read more »

Article originally published in Insurance Networking News. Chinese insurance companies were bracing for an onslaught by global competitors last month when a commitment to the World Trade Organization dictated opening the borders to foreign competition. “Almost all insurance business is opening to foreign insurers,” says Xiaolin Li, a dean at Beijing-based Central University of Finance and Economics. “The exceptions are group insurance and life insurance, which requires a foreign insurance company to set up a joint venture with a local partner.” In fact, foreign firms began arriving well ahead of the anticipated rush. According to the China Insurance Regulatory Commission (CIRC), the number of foreign-funded insurance companies in China increased from 14 in 2000 to 40 in 2005. More than half of the insurance companies in the Global Fortune 500 set up shop … Read more »

Article originally published in Insurance Networking News. There are three main reasons why it’s cheaper to outsource work to WillowCSN Inc. than to do it in-house-even though Willow doesn’t ship the work off to India, but keeps it in the Unites States. First: Willow’s agents work from home as independent contractors, so there are no office costs or benefits expenses. Read full article (free registration required). … Read more »

Article originally published in Insurance Networking News. Late spring 2005, the world learned that a crime ring that included call center employees of an Indian outsourcing company stole more than $300,000 from Citibank customers by tricking callers into giving up their PIN numbers. The news sent shockwaves through the industry, as India was the premier destination for business process outsourcing in the world. Many predicted that the Indian outsourcing sector would suffer as a result. Read full article (free registration required). … Read more »