BPM Series: Operations as a Service or Business in a Box!

As we are evaluating an IT partner for the start-up Insurance company that I am working for, more than one prospective IT partner have offered to work with us on Operations as a Service or Business in a Box model.

What is Operations as a Service or Business in a Box Model?

As part of the model, IT partner would take complete responsibility for back-office business process execution as well as IT systemms & infrastructure implementation and offer it as a combined service. So for example, for an insurance company, the IT partner would invest in systems such as Policy Administration System, Channel Management System, Auto Underwriting System, Portal, BPM & Imaging system, etc. along with the necessary infrastructure – Data Center & Network. The IT partner would go on to configure the company’s products and processes on these systems. The IT Partner would then run the back-office business processes such as New Business & Underwriting, Policy Administration, Claims Management using the IT systems and infrastructure implemented for the company. The IT partner would charge a consolidated fees – per transaction / rental fees – for the IT systems, infrastrcutre and process services.

I couldn’t believe my ears. This is something that I had predicted almost a couple of years back through various blogs on SaaS and convergence of SaaS, BPO and Shared Services:

Sidwalk: Software as a Service – A reality check!
BPM Series: SaaS, Shared Services, BPO – Will they converge?
BPM Series: SaaS, Shared Services, BPO – Will they converge? – Most likely

There are atleast one financial services company and two insurance companies recently set-up in India have opted for this model offered by an Indian IT MNC and a global IT MNC. There seem to be obvious advantages especially for start-up companies to opt for this model. They are:
– Quick time to market
– Focus on critical ser-up activities such as Branding, Marketing, Product Development, etc
– Lower capital costs
– Scalability and flexibility in running operations

What do you think are the challenges and downsides?

Advertisements

One thought on “BPM Series: Operations as a Service or Business in a Box!

  1. Hi Nice Blog.Document scanning company offering document conversion and data capture services, including scanning of photographs, microfilm, microfiche, questionnaire, technical drawings and conversion to CAD and OCR editable text.document scanning

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s