Thursday, September 18, 2008

Why AIG's Downfall Won't Wipe Out Insurance Services Outsourcing

After AIG's downfall, people have started predicting the worst for the insurance services outsourcing industry and there are many who believe that things will never be the same again for insurance services outsourcing firms. However, if you ask the experts, you will be surprised to get a completely different opinion. And that's not only because the Fed has come to the rescue and has sanctioned a bail-out plan for AIG, worth a staggering $85 Billion.

Not all may agree, but a significant percentage of those who are well-versed with the complexities of the insurance sector, believe that the insurance services outsourcing industry would not have been wiped out even if the Fed had not given its approval for the bail-out package. Their views and opinions get support from the fact that the insurance services outsourcing industry is not dependent on any particular company for its survival and that it caters to the needs of clients worldwide.

AIG may have outsourced projects worth millions of dollars and contributed significantly to the growth of the insurance services outsourcing industry. However, that does not imply that insurance related projects will dry up completely after AIG's downfall. Some outsourcing firms, especially those that have direct exposure to projects outsourced by AIG, may have to bear the brunt, but it's highly unlikely that the insurance services outsourcing industry on the whole will get adversely affected.

Nature abhors a vacuum and since these basic laws still apply, it is apparent that the void space created by AIG and other financial companies such as Lehman Brothers will soon be filled up by someone else. As such, it will be better if insurance services outsourcing firms focus on continuing their good work rather than worry unnecessarily about doomsday predictions.

Monday, September 01, 2008

Data Management Service Outsourcing Essentials

Data management service outsourcing may offer wide-ranging benefits, but since results are directly correlated to how well data management service outsourcing projects are actually managed, it is advisable that businesses carry out due-diligence exercises and follow prescribed guidelines as opposed to taking unwarranted risks. Apparently, the first step then would be to choose the most appropriate data management service outsourcing firm. This may take some time and effort due to the presence of many data management service outsourcing firms, but it is vitally necessary that businesses do not compromise on this. Selecting the right data management service provider would be like getting 50% of the task completed.

While formalizing a business relationship with the selected outsourcing firm, it is necessary that businesses choose a performance-based outsourcing contract. That would be in the interest of both the client and the service provider. The client will not have to worry about wasting his dollars on sub-par data management services and the outsourcing firm will be quite clear about the targets that are meant to be achieved within the specified time frame.

For choosing the right data management service outsourcing firm, it is recommended that businesses contact as many service providers as possible. Comparing offered quotes and carrying out background checks will then bring businesses closer to the most suitable data management service outsourcing firm.