Service Centers for Agency processing

[Jan Regnier]

I just read an article in the Focus Magazine addressing a future possibility for agencies - outsourcing their processing to a "Service Center" where the processing would be done -"centralizing many administrative tasks to lower expenses" leaving the staff in the agency to devote it's time to selling and maintaining clients. 

I just read this so I haven't had time to digest what would be good or bad (for an agency) about this setup.

Has anyone had any discussions or looked at this concept?  Opinions?

[Lance Bateman]

Outsourcing some of this is already being done by some agencies.  From what I've seen, they've had mixed results.  Consider what sort of service you have gotten from some of the outsourced support on systems, or the financial institutions.

Much of the outsource work is actually being done in India, and some of it successfully.

(Personally, especially at this time - I would see any outsourcing out of the country as something that should lead to bad dreams and guilt!)

[Jim Jensen]

I read that too, Jan. My current feeling is that if the goal is to have people simply take the call to make a change, they still have to be licensed, since it's quite rare that anyone simply gives information without wanting a premium or have questions. I could see perhaps having staff simply take the information down, then give it to someone else to actually process. Even in that situation I'd still rather have someone I hire do that, simply hire someone for much less and not worry about getting a licensed person. It's a bit of a fatalist view about technology though. I would hope that we can work to get systems to work together enough that the act of simply taking down the information nearly completes the process anyway. I'd be much more agreeable to the companies requiring us to make changes in their system if they could bridge it from our change request with little additional info, if any. Perhaps I'm not forward-thinking enough, but I didn't find much in the article that really cured any of the service center concerns

[DebAmstutz]

I guess I'm not a very good businessperson, but why would you want anyone else looking at your clients' items?  Why is it you can't hire someone, train them on the job, let them know that they probably won't become a millionaire at it, but it's honest work for honest pay?  If they show an interest on going farther, then they can.  If they're satisfied with processing, great!  One of the classes at TENCon touched on this point.  Some people are much better as processors than customer contact people.  Let salespeople sell and let processors process.  With today's technology, processors can work from home and not take up office space.  I guess I just do not understand having someone who is not personally involved with your business have access to that kind of information.

[Mark]

Jan,

Have you heard of Brightway Insurance out of Florida?  This sounds similar to their business model and they are very successful.  Each year at TENCon I ask Michael how many agencies they have now, and granted some of them are small, the numbers always amaze me.  I think it was 40 one year and 75 or so last year.  I never had a chance to talk to him this year, but I assume the trend has not ended.

I believe that Brightway is the service center if I understand it correctly.  If anyone knows any better, feel free to correct me.

All that aside, I know people outsource to China and India for some processing.  Kenny can talk about that.

[Mark]

My current feeling is that if the goal is to have people simply take the call to make a change, they still have to be licensed

You have to remember the time difference.  If you have outsourced service to India, they are doing back-office stuff while we sleep, not talking to customers and taking changes.

[Jan Regnier]

Personally  - I don't like the idea.  I want to be in control of how the agency runs and how things get done.  I don't have a positive opinion of "Service Centers" anyway. 

I don't get the concept of exactly HOW they would be helpful.  As was mentioned here, - the "info takers" need to be knowledgeable.....so - how many of us have had (personal or business) experiences with Service Centers that were helpful or positive? (or just a huge waste of time!) 

I agree with Lance (not politics! LOL) regarding WHERE the outsourcing would take place. Anything sent outside of our borders would be TOTALLY UNACCEPTABLE!

Maybe if your agency doesn't audit the end result of requests to the companies I guess it would work.  However, since we all know that the end result of company processing is about 50% correct - I just don't see it being a positive. 

The way we run our agency, I can't see this process being something to get involved with. 

How does it save money?  YOU don't have that staff in your office to pay but you ARE paying to have it done outside your office.  Have to figure all the expenses you paid for a staff are built into the price a service would charge you.  Eventually it would probably get back to being TOO expensive to hire it out and then you have to hire a staff again! and go through the training etc...  I am just not fond of this concept at all with the way we run our agency.

[Mark]

The way we run our agency, I can't see this process being something to get involved with. 

I'd agree with that as well