A financial services company providing life and annuity products was under continual pressure to reduce costs and improve operating efficiencies. They had a hybrid delivery model (shared services and outsourcing) but were not achieving the desired overall performance and not leveraging new technologies to drive process improvement.
The company engaged ISG to address their overall service delivery model, complete automation assessments, benchmark their old IT and Ins Ops outsourcing contracts, perform business case and risk analysis on potential delivery models and develop a governance structure to manage their future state.
Imagining IT Differently
ISG conducted a data collection exercise to develop a baseline and identify opportunities for service delivery model improvements including RPA. Concurrently, ISG led the client through renegotiations and RFPs to evaluate and deliver new IT and BPO outsourcing agreements, sale of a shared service site, implementation of RPA and other Automation Technologies, right-sized the retained organization with proper roles, and created a Governance organization to manage both the internal and external processes and automated appropriate functions. ISG advised and supported the client through a comprehensive and end to end program that addressed resolving technology challenges, quickly implemented RPA/Automations, addressing operational effectiveness with process standardization and implementing global governance.
Future Made Possible
New Service Delivery Model in-sourced several critical functions that were previously sourced, created new outsourcing agreements that provided better service at a lower cost, expedited implementation of RPA, and implementation of a global governance organization.
The company achieved a cost savings of ~30%, including a committed productivity yield of ~40% from outsourcing providers and rebadge of some resources from internal captive to outsourcer.
ISG provided comprehensive support that resulted in new Service Delivery Model with Improved service levels that reflect business objectives, flexibility to change over time and a strong vendor management function to mange both internal and external service delivery.
"ISG helped us assess our insurance back-office, using their assessment tools to identify gaps from best practices and did a CAS to redefine scope. This approach, along with their sourcing strategy, resulted in significantly improved service levels and a significant reduction in price. They are true professionals and have been great partners. We couldn’t have done it without them."
- Mike Heard, CNO, Washington National President