Special Advertising Section
Climate Change
The global
economy is
esults that positively
impact the entire enterprise value chain. EXL Service, which
accentuating T
ransformation business process outsourcing initiatives con-
tinue to evolve to produce qualified r
improves the economics of insurers by providing trans-
a shift in
formation and outsourcing services, migrated from single or discrete
intellectual
transaction processes to end-to-end functional solutions. Yogendra
Goyal, vice president and head of insurance sales, takes a closer look at
and human the ever-changing business process outsourcing landscape.
resources and
Best’s Review: What current trends do you see around busi-
unleashing
ness process outsourcing?
YOGi: From a buyer’s perspective, the clear trend is toward a high
the power outsourcing adoption rate. Two years ago, we had six insurance clients;
of business
today we service 20 large carriers with more than 4,500 employees.
process
There’s also a shift toward the mid-market segment. Mid-market
companies with net premiums written of less than $2 billion have Yogendra Goyal,
outsourcing been late followers of outsourcing. But recently they have started
Vice President and
more than ever.
moving aggressively in this direction. These insurers are under
Head of Insurance Sales
intense pressure to cut costs. That’s forcing mid-market companies
to innovate and enhance their go-to-market speed to shield against
large companies who have changed their business strategy to get a
“
Companies
need to focus
piece of the mid-market customer base.
on innovation
Also, insurers are seeking a global delivery model to fulfill their
business continuity needs, geopolitical derisking and multilingual
to keep ahead of
requirements. We now have delivery centers in the Philippines,
the competition
Czech Republic and Romania to offer various languages to compa- because risk is
nies with a non-English-speaking customer base.
being repriced
BR: What changes is the global economy bringing to the BPO are-
as we come out
na, and how are you helping companies gain competitive advantage?
of this financial
YOGi: The most significant concept that can be applied to BPO
from an economic perspective is David Ricardo’s theory of compara-
crisis.
”
tive advantage. Comparative advantage has imperceptibly shifted from
a theory of leveraging natural resources to one of leveraging the intel-
lectual and human resources of a nation. Recent changes in the global
economy have accentuated this shift. The biggest change is the change
in the definition of what was considered core vs. non-core business
processes that companies were willing to outsource.
We enhance the competitive edge of our clients by freeing up
their experienced resources to take up value-added activities rather
than managing routine administration. Companies need to focus on
innovation to keep ahead of the competition because risk is being
repriced as we come out of this financial crisis. Consumers will
Listen to the
become more demanding because they have more information than
full interview
ever before, thanks to the digital era.
BR: What lies ahead for the business process outsourcing area?
YOGi: The age of captives is over. Third-party providers now are
a proven model. Also, companies are looking for domain expertise
rather than low-cost providers. Pricing will move into outcome-
based vs. transaction or a full-time equivalent-based model. Past per-
formance is not an indicator of future outcome. Companies would
be more inclined to seek data-driven decisions, hence we see a rise
in usage of decision analytics services.
BR
n For the complete audio interview, visit www.bestreview.com/tech09.html.
Best’s Review Special Section 99
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