Personalized Medicines Have Promise But Face Headwinds | Market Insights™
December 8, 2017
Personalized medicines have promise but face headwinds
Personalized medicines have promise but face headwinds
The annuities market is experiencing significant change, with margin pressures, changing customer expectations, and increasing competition from other financial products buffeting annuity providers.
One way annuities providers can weather the storm is to leverage the benefits of third-party partnerships
While the APAC region remains dominant, other regions are growing on the back of digitalization, risk diversification, increasing regulation
The 2008 financial crisis sent shockwaves through the global banking industry, with U.S. banks alone paying upwards of $300 billion in fines and settlements, and bringing the need for strong risk management practices into sharp focus
The 2008 financial crisis sent shockwaves through the global banking industry, with U.S. banks alone paying upwards of $300 billion in fines and settlements, spurring development and adoption of risk management services
Click the image to enlarge
Four key factors affecting capital markets BPO: regulatory environment, risk management, adoption of analytics, legacy systems
Click image to enlarge
Regulatory changes around the globe are driving high growth in capital markets BPO
Increasing use of automation and digital channels across all banking lines of business reduces FTEs needed for transaction-based activities. Service providers are capitalizing on those opportunities to move up the value chain to deliver more complex services.
There’s a lot of rethinking going on in North American businesses in light of new technologies. In Everest Group’s conversations with clients and in round table discussions we’ve been holding in the industry, we find that these mature companies believe automation gives them the ability to bring their work back on shore.
After more than a decade of achieving value through the offshore labor arbitrage model, one would think that mature organizations that have built GICs or captives, or organizations with extensive use of third-party outsourcing providers, would be at peace with the model. We expected them to move to a model of arbitrage plus automation. But the level of peace and comfort with offshore arbitrage is much less than we expected, and companies are expressing their desire to use robotics automation to repatriate their work.
This is particularly the case in regulated industries with significant compliance requirements. This is where the desire to move work back on shore shows up first. The increasingly regulated financial services industry is especially burdened with complex regulations. These businesses receive a higher degree of scrutiny if operations are in offshore low-cost locations than if they are automated. It’s easier to demonstrate compliance in an automated environment than in an arbitrage labor environment.
Moreover, these companies believe life is easier in an onshore environment than in an offshore environment.
This is not to say the desire to move work back on shore is a sea change. But we are seeing the early stages of this movement.
I think this is a very interesting development. Our hitherto assumption that the market had overcome its xenophobic fears is not correct. It’s quite possible that the steady blast of negative press in the media and the nationalistic pressure from consumers may be starting to play a role in this re-examination.
Photo credit: Flickr
The healthcare payer market continues to experience rapid transformation as efforts to control costs, minimize waste, and root out fraud and abuse collide with the effects of an aging population, the burgeoning insured population brought on by the implementation of the Patient Protection and Affordable Care Act (PPACA), and advances in technology and medicine. Taken alone, any one of these events would have significant impact on healthcare payers; together they’re nothing short of revolutionary.
Faced with such transformation, healthcare insurers are seeking strategies that can help them to manage ever-increasing demands. Among the more impactful tools they can employ is business process outsourcing (BPO). The healthcare payer BPO market, currently estimated at about US$4 billion, is growing at a healthy 14 percent annually. And it’s no surprise, as BPO is more important than ever in helping healthcare payers to streamline their operations and reduce costs. Beyond the basics, BPO can also help providers to research, develop and launch new products; to glean value from the masses of data they capture; and, to identify and reduce cases of fraud, waste, and abuse.
And there appears to be some evidence that payers are tapping into the power of BPO to help address their most significant challenges. While claims processing remains the most commonly outsourced BPO process, other more strategic areas are driving overall growth:
The changes in the healthcare market are daunting for even the most prepared and best funded healthcare payers. In order to compete in the increasingly challenging and competitive market, payers have to take advantage of every tool available, and BPO is fast becoming the industry’s Swiss Army Knife.
For more insights on the healthcare BPO market, see our just released report, Healthcare Payer BPO – State of market with PEAK Matrix™ Assessment. Log in or register to download a complimentary preview.
Photo credit: Flickr
©2023 Everest Global, Inc. Privacy Notice Terms of Use Do Not Sell My Information
"*" indicates required fields