Narayan AmmachchiGlobal IT consultant Cognizant has landed a deal with American insurance and financial services firm Nationwide to provide back-office services.
The insurance company is yet to determine which functions to outsource and when, according to The Gainesville Sun. The transition process is expected to be completed sometime next year.
Some reports say the deal will impact nearly 500 employees at Nationwide. However, it seems the insurance company will not lay off any of its staff because it already has more than 1,200 positions vacant at its offices in the US.
It is most likely to re-skill the affected employees so they can carry out other jobs within the organization.
Government regulations and new technologies have disrupted the US insurance industry like never before. Although digital technologies are helping them simplify critical processes relating to policies, claims, and billing, gaining a reliable insight into customer needs has remained a challenge, say analysts.
Cognizant is armed with both technology and experience to support an insurance firm, with the healthcare IT sector accounting for more than 30% of its revenue. Cognizant’s subsidiary TMG Health provides back-office services to many insurance firms selling Medicare and Medicaid health plans.
In the past decade, Cognizant purchased several American IT firms serving the life science and health industry. Colorado-based TriZetto was its significant acquisition. TriZetto added 245,000 clients to its roster, making the Teaneck, New Jersey-based IT firm one of the largest IT service vendors in the US healthcare sector.
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