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23 July, 2009 – Kiev – The research “Central and Eastern Europe IT Outsourcing Review 2008” provides an evidence of the rapid development of IT outsourcing services market in the Central and Eastern Europe. The CEE cluster becomes the real player on the global outsourcing market. The clients are getting more interested in the “nearshoring” to the CEE region than  in the offshoring to India or China.  The customers become more sophisticated in their business relationships. There has been a shift from simple cost savings as a motivation to valuing the experience of outsourcing services providers and efficiency of cooperation between the client and provider teams. The advantages of the CEE countries such as cultural compatibility with Europe and North America, technical and business experience are of great value for the clients.

One of the main objectives of the research conducted by the Central and Eastern European Outsourcing Association (CEEOA) with the support of Council of European Professional Informatics Societies (CEPIS) is to provide the holistic view on the potential of the CEE region as a global cluster for provision of nearshore IT outsourcing for the Western European countries and for offshore IT outsourcing for the North American market.

“CEE IT Outsourcing Review” is conducted for the second time.  The 2007 research report “Central and Eastern Europe IT Outsourcing Review 2007″ indicated that there was a great interest from the clients consuming outsourcing services and research companies.  Following positive feedback for the 2007 Report, the CEEOA decided to commission an annual review on “CEE IT Outsourcing Review”, resulting in this 2008 Report. “CEE IT Outsourcing Review 2008” was conducted during January to July 2009. The national IT and outsourcing associations, largest outsourcing companies, and independent experts were invited as respondents.  The Ukrainian software development company NET Technology Center WEB100, who provide offshore outsourcing services and deals with the development of IT solutions for B2B communications and business solutions based on Social Media approaches, sponsored the research.

The research examines key development indicators of the IT outsourcing market in the 16 countries of the Central and Eastern Europe region including market value, number of professionals, number of IT companies providing outsourcing services and market rates.

“CEE IT Outsourcing Review” includes the detailed country profiles, experts estimations on the outsourcing market development during the recession period, their opinion on new tendencies and forecasts for the market recovery, profiles of the leading outsourcing companies in the region.

Victor Maznyuk, President of Ukrainian Hi-Tech Initiative, one of the CEEOA founders, noted,“Outsourcing industry in the Central and Eastern Europe does not suffer significantly during the financial crisis. At the outset of 2009 there was insignificant number of the outsourcing companies closures.  The outsourcing industry always expected from the outsourcing players  to meet the client requirements quickly and to control the expenses. Having a great experience of the development on the competitive market of outsourcing services provision, the Eastern European companies learned how to work successfully during the recession period without  taking drastic measures and significant business changes.

As a whole, the crisis produced the effect of improvement in the industry. The number of IT specialists slightly increased, their salary and rental fee underwent insignificant drop. This allowed companies to reduce the cost of services and to be confident during the recession period. Without any doubt I can claim that outsourcing industry is ready for the increase of provided services value in view of the forthcoming economic recovery.”

The official version of the research “Central and Eastern Europe IT Outsourcing Review 2008” is available at the information portal ITONews.eu and at the CEEOA website.

About CEEOA

Central and Eastern European Outsourcing Association (CEEOA) (www.ceeoa.org) was founded in 2008.  The members of the association are the leading national IT and Outsourcing associations from the Central and Eastern Europe, among them Baltic Outsourcing Association (BOA), Ukrainian HI-TECH Initiative, Hungarian Service Industry and Outsourcing Association (HOA), Employers’ Association of the Software and Services Industry (ANIS) from Romania, Bulgarian Web Association (BWA) and ASPIRE – Association of IT & Business Process Services Companies (Poland). One of the main objectives of CEEOA is to promote the Central and Eastern European Region as competitive alternative to other Global offshoring destinations, and to increase services delivery quality and volume to the recognized standards.

Contact information:

Inna Sergiychuk

Central and Eastern European Outsourcing Association (CEEOA)

Phone: +38 044 458 1753

Consolidation in the insurance BPO services provider landscape is expected in more than one direction. The larger BPO vendors are aggressively buying out smaller, niche providers to gain scale, clients and expertise in the insurance domain. Larger providers are also entering innovative arrangements with insurance carriers to buy out and manage their back-office transaction processing units.

Further, a new stream of consolidation is likely to be a growing reality, although it may appear far-fetched right now. Third party administrators or TPAs who will be increasingly threatened by competitive pressures may buy out smaller BPO vendors, especially offshore ones, to build a presence at a low-cost base like India. On the other hand, some of the large third party providers are likely to buy out TPAs, for on-shore presence, client access and domain knowledge.

A report by Pune-based ValueNotes suggests that insurance offshoring (BPO) to India is likely to grow at 30 percent CAGR over the next three years. India’s revenues are estimated to grow from $690 million currently, to around $2 billion by 2010. Driven by the need to reduce costs, differentiate products in an increasingly competitive environment, and ensure regulatory compliance, offshoring will be a growing imperative for the global insurance industry.

According to the report “Insurance Outsourcing: India Gains Momentum As Offshoring Intensifies – Trends, Insights and Key Vendor Profiles”, the large established offshore BPO vendors in India are expected to gain the most, as they will be able to demonstrate the ability to manage scale, and offer services across the value chain to global customers. “By FY2010”, says Arun Jethmalani, CEO of ValueNotes, “a large number of Indian vendors will have evolved into mature, end-to-end service providers, competing with multinational outsourcing companies”. Players like Genpact, WNS and EXL Services, as well as BPO offshoots of IT companies like IBM, TCS, Infosys (Progeon) and Wipro will emerge as formidable global players in the next few years.

Arpita Bedekar, analyst at ValueNotes, expects “greater offshoring of high-end, higher-value services like analytics, actuaries and underwriting to push average billing rates in offshore insurance BPO upwards by more than 25 percent in the next two to three years”.

With the ever increasing mergers, failures, competitions and consolidations, the insurance industry is facing tremendous pressure. If you want your insurance organization to gain a competitive edge, consider Outsourcing Insurance Services to India. Outsourcing insurance services to India can enable your organization to increase its efficiency and growth and also meet all the requirements of your valuable customers. India claim administration service providers can help your organization reach greater heights through increased proficiency.

India, a pioneer in providing outsourcing services across a wide range of industries has years of experience and expertise in providing quality insurance policy services, insurance services, annuity insurance services and claim administration services amongst others. Organizations in the U.S and U.K who have outsourced insurance services to India have been able to concentrate more on their core business functions while getting access to quality insurance services.

Outsource insurance services to India and benefit from expert services, organized process, quality control processes, customized services, experienced workforce and domain expertise. Outsourcing Annuity Insurance Services to India can also help your organization benefit from faster time-to-market and lower operating costs. If you are looking for professional claim administrative services, outsource to India and get access to reliable insurance services.

India Offers End-to-End Insurance Services

India offers varied insurance solutions dealing with health, property, life, annuities, reinsurance and property and casualty amongst others. In case you want a customized insurance service, you can approach your partner in India who will provide you with tailor-made solutions designed to suit your insurance service requirements. The following is a list of insurance services that can be outsourced to India:

1. Insurance Claims Services

You can outsource a wide range of insurance claims services such as loss runs, imaging, death claims, data analysis, recovery, subrogation, claims estimation, claims assignment, imaging and matured endowments amongst others. Outsource insurance services to India and benefit from accurate services.

2. Insurance Agency Management Services

India has expertise in offering agency management services such as, data exchange, representative finder, proposal generation, licensing, commission accounting, resource management, compensation and commissions amongst others.

3. Insurance Policy Administration Services

Outsource insurance policy administration services to India and get access to proficient services such as, billing, alpha inquiry, cash control, correspondence, policy changes, online enrollment, cancellations, new product introductions and case manager tools amongst others.

4. Insurance Compliance Services

India can offer insurance compliance services, such as, DMV reporting, checkfree IRS, checkfree 1099, STAT reporting to state agencies and GAAP reporting to state agencies.

5. Insurance Disbursement System Services

India has the expertise to offer disbursement systems services such as cash disbursement system, structured settlements and payments amongst others.

6. General Insurance Services

India offers a host of general insurance services such as policy conversion, imaging, workflow, document management, GL accounting, GL suspense, web channel integration, legacy system rationalization, componentization, straight through processing, architecture standardization and policy conversion amongst others.

7. Insurance Marketing/Sales Services

Outsource insurance marketing and sales services to India and get access to data warehousing, data marts, lead tracking systems, sales channel management and sales force automation amongst others.

8. Other Insurance Services That Can Be Outsourced to India

• Life insurance outsourcing solutions

• Offshore annuity insurance services

• Property and casualty insurance services

Outsource insurance services to India and give your organization a competitive advantage.