In the insurance industry, companies are under constant pressure to optimize costs, enhance operational efficiency, and maintain strict compliance—all while driving revenue growth.
At Next Level Solutions, we’ve crafted a unique approach to achieving these goals by strategically combining onshore and nearshore resources.
Our industry expertise allows us to alleviate client costs, address time zone challenges, and minimize turnover, ensuring sustained success for our clients.
Outsourcing Non-Revenue Generating Functions: A Smart Strategy
One of the key strategies we employ at NLS is the outsourcing of non-revenue generating functions to Honduras. This approach allows us to capitalize on the significant cost advantages offered by nearshore resources. The lower salary ratios in Honduras enable our clients to allocate their resources more effectively, driving down operational expenses without sacrificing quality.
- DevOps and Infrastructure Management: For large clients, we’ve successfully implemented this nearshoring strategy to manage their DevOps and infrastructure needs while ensuring full compliance with SOX regulations. By outsourcing these critical yet non-revenue generating tasks to our skilled professionals in Honduras, our clients can stay focused on their core business activities—those that directly contribute to their top-line growth.
- Regulatory Compliance: Another area where our nearshore strategy excels is regulatory compliance. Our team in Honduras handles essential, non-revenue generating tasks like rate maintenance, forms maintenance, and statistical reporting. By entrusting these functions to our nearshore experts, we ensure that our clients remain compliant with industry regulations, all while minimizing the associated costs.
- Administrative Functions: We also manage crucial administrative tasks from Honduras, such as commission statements and loss runs. While these functions are vital, they don’t directly drive revenue. By outsourcing them, our clients can reallocate their resources to more strategic initiatives that foster growth.
Keeping Revenue-Generating Functions In-House: The NLS Advantage
While we outsource non-revenue generating tasks, we make sure that functions critical to revenue growth are managed in-house by our highly skilled professionals.
- Data Science and Product Enhancements: At the heart of insurtech innovation is data science, and our in-house team of data scientists is dedicated to driving product enhancements and developing business process models (BPMs) that optimize client operations. This approach ensures that our clients benefit from cutting-edge solutions that enhance their competitive edge.
- Actuarial Data and Straight-Through Processing: We also focus on insourcing data that feeds actuaries and enables straight-through processing—functions that are integral to accurate risk assessments and efficient claims processing, both of which directly impact revenue generation.
The Benefits of Nearshore Resources in Honduras
Our nearshore resources in Honduras offer several compelling advantages:
- Low Turnover Rates: One of the standout benefits of nearshoring to Honduras is the remarkably low turnover rate. While turnover rates in the U.S. average around 10% and can reach up to 20% in India, Honduras boasts a turnover rate of just 3%. This stability is crucial for maintaining continuity and expertise in non-revenue generating functions.
- Time Zone Alignment: Another significant advantage is time zone alignment with the U.S., which facilitates real-time collaboration and seamless communication between teams, enhancing overall efficiency and responsiveness.
- Bilingual Staff: With major offices across the U.S. and Puerto Rico, and remote employees worldwide, our presence in Honduras strengthens our Spanish-speaking team. This not only facilitates communication between our Puerto Rico and Honduras offices but also allows us to collaborate seamlessly on projects that require bilingual capabilities.
Next Level Solutions exemplifies how strategic resource management can revolutionize the industry.
By outsourcing non-revenue generating functions to cost-effective and stable nearshore resources in Honduras, we help our clients significantly reduce expenses while maintaining high standards of compliance and operational efficiency.
At the same time, by keeping critical revenue-generating functions in-house, we ensure that our clients benefit from cutting-edge solutions that drive growth. This smart use of onshore and nearshore resources positions NLS as a leader in the insurtech space, providing our clients with a competitive edge in a dynamic market.