Insurance IT-BPO integrated offering – Genpact, Mastek announce strategic partnership
SOURCE: Press Release
DATE: May 25th, 2010
This is a trend which we have been saying for some time now is going to be more of the norm over the next 9 to 12 months. Combination or partnership of mid size IT firms and pure play BPO firms as these firms look for next level of growth. As mid size IT firms struggle to find ways to rise above the noise of commoditized services and offerings and pure play BPO players look for non linear ways to grow their business, some of these partnerships are bound to happen. Mastek , is a mid size firm and our experience of working with them has been very positive and it has a great leadership team. It has though struggled to grow to the next level in-spite of positive customer experience. Genpact on the other hand has grown to be the largest BPO provider out of India but the pure play offering, dependency on GE, still continues to haunt the firm and margins. In a number of analyst calls, Genpact continues to re-iterate that it does not need any ‘IT support’ to grow but the reality of the marketplace is different and Genpact is smart to try different options including partnerships, acquisitions.
For insurance firms looking to outsource an integrated offering is a compelling model, specially as new technology platforms are created where IT, Operations are integrated. The challenge for our clients when dealing with IT/BPO providers continues to be “integrated execution“. A number of ’single integrated’ firms we see continue to struggle to really execute on an integrated solution. IT, Operations, Business Consulting all run different tracks and from a customer perspective it could sometimes be a frustrating experience once they get past the sell of integrated services. Without proper planning, governance structures and contracts dealing even with a single vendor offering all, IT & BPO could feel like a multi vendor execution with high rate of customer dissatisfaction.
For Genpact, Mastek to make it be successful they have to work hard to provide a clear execution strategy and methodology to their customers to be a true value added to the insurance firms. Outside of that happening it could be a pure cross selling opportunity which benefits these firms but not necessarily the customer.
What we also find is that the integrated offering is also a good strategy but not for all companies looking to offshore. If you have tried and been successful in working with integrated service providers (IT, BPO, KPO) we would love to hear from you.
Mohit Sharma is the CEO of Corrystone Global Partners. Corrystone is a specialized globalization firm providing advisory, training and staffing services to firms in US and India. We work with firms in the US which are exploring low cost options for IT, Business Process work and looking at ways to further optimize cost, manage operational risk and setup presence in India. Contact us at info@corrystone.com to learn more about how we could make your journey more productive by leveraging our experience.
Press Release
Genpact , a global leader in business process and technology management, and MajescoMastek, the U.S. subsidiary of global technology solutions provider Mastek Limited (NSE: MASTEK), today announced a new strategic partnership focused on the insurance industry. The partnership brings a new model to help transform insurance carriers’ operations, leveraging both business process management and technology solutions.
The companies will offer joint information technology and business process management solutions to large and mid-sized insurance carriers. In addition, both parties plan on developing innovative platform-based business process management solutions across the industry value chain including policy services, billing, claims, distribution management, and new business/underwriting.
Carriers today are under intense cost pressure and need to transform their business operations but are struggling to underwrite the cost associated with doing so. By joining forces, MajescoMastek and Genpact can meet this need by leveraging process efficiencies and innovative technology in a cost-effective and cost-certain model.
“MajescoMastek has always been focused on bringing transformational solutions to the insurance industry. This partnership with Genpact is another step in that direction,” said Mike Dufton, president of MajescoMastek North America. “Together, we can move to provide solutions that solve entire business problems while giving carriers cost certainty with business models that let us share in the risk with our clients — something they have been asking vendors to do for some time now.”
According to research and advisory firm Novarica, insurers across the globe are using innovative techniques in their operating models to adapt to recent changes in the economic landscape. Also, the paradigm shift in information technology in areas such as widespread adoption of business intelligence tools, social networking, Web 2.0, and mobile devices is changing the nature of all information-based businesses.
“The combination of business process management with proven IT solutions offers a very compelling value proposition to these insurers,” comments Matthew Josefowicz, Novarica’s director of the insurance practice.
“The insurance industry has been searching for a leading solution that combines industry-leading business process management capabilities with state-of-the-art asset-based offerings,” said Mohit Thukral, senior vice president and business leader, Financial Services, Genpact Ltd. “Our partnership with MajescoMastek has been met with enthusiasm from our mutual customers and we believe it will be a true differentiator in the insurance marketplace.”
About Genpact
Genpact is a global leader in business process and technology management, offering a broad portfolio of enterprise and industry-specific services. The company manages over 3,000 processes for more than 400 clients worldwide. Putting process in the forefront, Genpact couples its deep process knowledge and insights with focused IT capabilities, targeted analytics and pragmatic reengineering to deliver comprehensive solutions for clients. Lean and Six Sigma are an integral part of Genpact’s culture and Genpact views the management of business processes as a science. Genpact has developed Smart Enterprise Processes (SEP(SM)), a groundbreaking, rigorously scientific methodology for managing business processes, which focuses on optimizing process effectiveness in addition to efficiency to deliver superior business outcomes. Services are seamlessly delivered from a global network of centers to meet a client’s business objectives, cultural and language needs and cost reduction goals. Learn more at http://www.genpact.com.
About MajescoMastek
MajescoMastek is a global provider of innovative technology solutions focused on Life & Annuity carriers, Property & Casualty carriers and Capital Market firms. For over 27 years, we have combined our leading products, people, and processes to drive business impact and competitive advantage. MajescoMastek is part of the Mastek Group with over $200 million in revenues (FY2009). MajescoMastek enables technology enabled business transformation and has a track record of successful implementations.
MajescoMastek uniquely combines its wide intellectual property base, domain expertise, mission-critical program management abilities and complex solutions capabilities to help insurance carriers unlock business value. MajescoMastek delivers proven solutions in core insurance areas including Incentive compensation, producer lifecycle management, billing, policy administration, new business processing and claims. With an employee strength of over 3100 people, the Mastek Group operates across the U.S., Canada, U.K., and Asia-Pacific regions. For more information, please visit us on the Web at http://www.majescomastek.com.
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