India hosts specialist talent, the required language skills, and infrastructural facilities at a lower cost for Third-Party Administrator (TPA) Business Procurement Outsourcing (BPO).
RALEIGH, N.C., Nov. 2, 2021 /PRNewswire/ -- Third-Party Administrator (TPA) outsourcing services, including workers' compensation insurance, health insurance, and various employee benefits, continue to gain prominence, especially in India.
Companies in developed regions such as Canada and Europe outsource their transactional processes to India, mainly because of the latter's low-cost talent pool. Apart from India, the Philippines, Poland, and China have huge scope for TPA outsourcing, and they are considered cost-effective locations.
"Cloud-based TPA services are fast catching up among many organizations. In the next three years, many of them will soon evolve so that they could deploy Machine Learning-based technologies with increased Artificial Intelligence features," said Sujeet Kumar R, Senior Research Analyst at Beroe. "P&C (Property and Casualty) Insurance and Workers' Compensation are typical insurance claims that are processed through TPA BPO as outsourcing adoption for these services is over 75 percent. Outsourcing adoption for Health Insurance is above 80 percent."
In addition to AI and ML, the application of Big Data has been increased in the insurance underwrite space. Also, there is an increase in the use of chatbots as BPO service providers try to interact with customers online. Customers these days use social media platforms for any interaction. The touchless claim is one thing that all industries are looking at as this new trend can fasten user experience. Another interesting market trend to watch out for is the adoption of drone usages as this new "insurance inspector" can expectedly save a lot of money for the insurers.
Thirty-five percent of small-scale businesses (with over $5 billion revenue), 40 percent of medium-scale companies (with $5-10 billion revenues), and 25 percent of large-scale businesses (with over $10 billion revenues) have adopted the TPA outsourcing service. Similarly, looking at the delivery location adoption trends, over 42 percent fall under onshore, 54 percent offshore, and the rest Nearshore.
India has a large pool of talent and the required language skills coupled with good infrastructure facilities. These are the key reasons for the country to gain significant TPA outsourcing market share. Also, the Asia Pacific enjoys maximum traction in this market owing to the best insurance TPA Business Process Outsourcing service, offering 40-50 percent lower cost compared to developed countries.
However, the key challenges that the TPA Outsourcing Service Industry faces are to work at lower costs, adopt automation and a robotics-based workflow, have access to highly skilled resources, and have great infrastructural support. So, most of the responsibility falls on the buyer companies that need to identify the TPA outsourcing service provider who can offer skilled resources along with cost-effective and technology-enabled services. India seems to be the right fit as it provides all required by the industry at a lower cost.
"TPA service providers play a major role in taking care of the end-to-end claims management operations. Often, companies are quite concerned about outsourcing, and it is essential to understand TPA service value chain, adoption trends, and delivery location," said Sujeet Kumar R, Senior Research Analyst at Beroe. "The majority of the best-in-class organizations would eventually move to the deployment of cloud-based TPA services. In the next 2-3 years, more organizations are expected to adopt RPA and evolve to the deployment of cognitive AI for their TPA operations. India is positioned strongly to benefit from this deepening trend."
For more such market insights, procurement intelligence, supplier analysis, price, and cost benchmarking, please log on to Beroe LiVE.Ai: https://www.beroeinc.com/beroe-live-ai/
About Beroe
Beroe is the world's leading provider of procurement intelligence and supplier compliance solutions. We provide critical market information and analysis that enables companies to make smart sourcing decisions - leading to lower costs, greater profits, and reduced risk. Beroe has been providing these services for more than 15 years and currently works with more than 10,000 companies worldwide, including 400 of the Fortune 500 companies. For more information about Beroe Inc., please visit https://www.beroeinc.com/.
Media Contact:
Debobrata Hembram
debobrata.hembram@beroe-inc.com
Logo: https://mma.prnewswire.com/media/777512/Beroe_Logo.jpg
