September 27, 2011: It is the banking and insurance related job always outsourced to the offshore market, but it seems that the trend is gradually changing. Today the near shore market service providers have become quite efficient to provide business solutions even better than the vendor in the offshore.
Putting up a trend is Nova Scotia, a small place in North America. The place is now a days in the spotlight as one among the best destinations in the near shore market for outsourcing. It was at a rapid phase the Nova Scotia grew as a favorite destination with benefits such as the cheaper cost. At present the hourly rate charged by service providers in this region is comparatively very less than what an offshore service provider charges. Moreover, it also avoids issues such as cultural differences and communication barriers which are always hurdles for smooth operations from offshore.
It is particularly the insurance sector service buyers find it more beneficial as Nova Scotia based vendors are best with financial and insurance services. We can find many insurance-focused vendors in North America. One among them is the CGI, which claims that they have massive knowledge into insurance related jobs which can enhance the vendors to deliver best results to satisfy the buyers.
Both micro and macro environmental factors has influenced the near shore market. The growth of the sector from the realization of untapped scope in the Business Process Outsourcing sector paved way to vendors in the near shore to establish them as a challenge for the offshore vendors. As far as offshore vendors are concern the revenue has been in a declining stage from the previous years. Considering India, which is always been named as the best destination globally for outsourcing is also showing downtrends. Apart from North America, growing markets such as the Philippines and South Africa is also emerging as new rivals for the Indian Business Process Outsourcing (BPO) Sector.
As far as US based companies or clients are concern, upcoming near shore vendors are a perfect choice to enjoy the advantages such as zero percent communication barriers and cultural difference along with cost benefits and excellence in services. Why should an US based insurer take all the pain and risk by outsourcing works to the offshore where drawbacks are immense? In fact the US economic instabilities are also a reason for the companies to rethink on vendor selection. In the US, insurance companies are immense and they will obviously find it more comfortable to depend on near shore outsourcing vendors apart from offshore or shared service providing models.