Hot Outsourcing Markets (Insurance Tech)

Calling upon his global outsourcing experience, Partner David Rutchik comments on key factors to consider when outsourcing to various geographic locales. Sample excerpts: “’It also is important to consider political stability, adds David Rutchik, partner with Pace Harmon, a San Francisco- and Washington, D.C.-based outsourcing advisory firm. Another [consideration] is basically respect for the rule of law,’ he notes. ‘It sounds amorphous, but it's a big deal,’ Rutchik continues. ‘That's what's held back places like China where intellectual property is not as respected - privacy rules, enough transparency, ... personal customer information rules.’ Another consideration might be time zones. While customer-facing operations such as call centers can be operated 24/7 and are not dependent on time of day, Rutchik explains, when it comes to things like application development, it can be beneficial to have a core team working roughly to same hours as offshore partners….With China, however, language challenges and intellectual property issues, for example, can stand in the way, Pace Harmon's Rutchik stresses. ‘We have done projects where some of the offshoring has been done out of places like Shanghai that are modernizing more quickly,’ he comments. ‘I don't know if it'll ever catch up to the country's manufacturing, partly because that's so far ahead.’…Pace Harmon's Rutchik agrees, pointing out that the Philippines and Malaysia are leading growth in the region. Because of the Philippines' past as a Spanish colony, he notes, a high number of employees have some skill with Spanish as well as English.”

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