Insurance Industry Overview
Constrained growth in the European insurance market has compelled insurance providers to be flexible and agile in adapting their operating models. They need to outsource business processes to maximize their full market potential and minimize spend. Companies must recognize the potential of sourcing options along the overall insurance value chain. This case study is a classic example of how we helped one of the leading insurance companies to explore new contact center locations and understand potential labor market through our procurement market intelligence services.
Business Challenges Faced
The client one of the leading insurance companies was facing predicaments in lowering the costs of the claims call center. They were looking to outsource a combination of customer relations, fraud/disputes, and collections phone calls to two different domestic locations to keep up with customer demand. However, this required the client a thorough understanding of potential labor markets in Europe that could support the project of their size. The client, therefore, decided to collaborate with SpendEdge to leverage their expertise in offering procurement market intelligence services. The primary objective of the insurance company was to understand the differences in cost between different geographies within Europe.
Key objectives the client aimed to achieve from the procurement market intelligence engagement were:
- Explore new call center locations with a couple of key suppliers and identify and evaluate possible locations.
- Better understand call center saturation and labor markets in each potential location.
- Identify risks related to fraud and theft in each location.
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Our Research Approach
To cater to the specific requirements of the client, the procurement experts at SpendEdge gathered and analyzed the information relevant to the company’s supply market. They classified critical-to-quality factors that could impact claim call center location positioning and analyzed Europe’s contact centers labor market. This helped the client to analyze the latest trends, drivers, and challenges impacting the market.
The SpendEdge team established accurate data requirements, along with operational definitions, and delivered a customized procurement market intelligence report. The report offered detailed insights into the labor market that could support ongoing call center operations of a size between 400 and 600 FTE. SpendEdge also collaborated with the client’s functional and operational teams to profile locations and identify low-cost country destinations.
The tailor-made procurement market intelligence report offered by SpendEdge helped the client to select one of the top locations for contact center employment in Europe and achieve scalability. This reduced claim costs by 15% while improving customer satisfaction. The report delivered also helped them to analyze factors such as low crime rate, low annual base rental, and vacancy rate impacting the expansion of businesses.
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How our Procurement Market Intelligence Services Benefited the Client?
The procurement market intelligence report offered helped the insurance company to
- Identify strategic locations for establishing a contact center of 400–600 FTEs. It considered factors such as crime rate, real estate feasibility, presence of large call centers, labor availability, and neutral voice accent.
- Obtain key insights into labor market size and segmentation. Assess key factors driving the growth of the labor market.
- Analyze the presence of large call centers in Europe and understand the concentration of suppliers in specific areas to avoid labor supply risk.