Pros and Cons of IT Outsourcing for Insurance Agents
October 23, 2017
Small to mid-size insurance agencies have a lot of choices related to IT technology and how to use it. One of them is whether to select IT outsourcing as a viable part of their business strategy. While there are many benefits to IT outsourcing some or all of your agency’s technology infrastructures and workflows, there are also some “cons” that agents feel might make it too risky to consider.
This article looks at the current state of IT outsourcing for insurance agents and some of the hindrances and reasons for partnering with a technology vendor.
The Current State of IT Outsourcing
Cloud technology has propelled IT outsourcing down new revenue streams. Now you can outsource just about everything but the computer you’re using to reach this blog. IT outsourcing options include the following:
Within the concept of IT outsourcing falls cloud service providers, hardware and software vendors, security experts, or managed service providers like TOSS C3 who can handle your entire technology infrastructure and keep it secure. Computer Economics breaks out IT outsourcing into the following categories:
In 2016 Deloitte reported in a global survey that 31% of all IT functions are now outsourced – and that number is increasing.
IT Outsourcing Pros
Insurance agencies choose IT outsourcing for all kinds of reasons and all kinds of functions. Some of the typical reasons we’ve heard include:
IT outsourcing offers a way for your agency to streamline the technologies and workflows associated with your most important business functions. You can pass along these improvements and use them to capture and retain more clients. It’s in this way that most agencies tell us IT outsourcing virtually pays for itself.
Should you outsource? Find out – get a free assessment.
IT Outsourcing Cons
Ultimately, as the state of IT continues to evolve more heavily toward technology-centric cloud-solutions, insurance agencies that fail to take advantage of the benefits of IT outsourcing will struggle to stay competitive and may eventually fall behind.
The reality is, IT outsourcing is a great way to streamline processes and save money. It offers opportunities to enhance security, to access and use the latest technology and software, and much more. So why are some businesses hesitant to take advantage of IT outsourcing?
Are these concerns holding you back?
The Final Word on IT Outsourcing
The ultimate effect of IT outsourcing on the small to mid-size agency is that is has driven a lot of technological innovation into a very traditional industry. It allows agencies to focus more efficiently on core business functions while allowing technology experts to focus on the nuts and bolts of data security, compliance, and cloud or on-premise access.
TOSS C3 is an IT outsourcing solution for your business. We offer secure on-premise and cloud solutions to help insurance agencies take advantage of the latest technologies to grow their business.
Contact us to request a quote.
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