In the life insurance business, customer relationships literally last a lifetime. Naturally, this leads to a quandary: How can an insurer respond to the dramatic technology and globalization trends in the financial services industry while preserving the rock-solid service and quality its loyal customers expect?
This was the central question for Prudential Financial as it sought to reduce the cost of operating its legacy systems. Some competitors had tried to accomplish this through traditional outsourcing contracts, only to find themselves with limited control of their environments and less-than-acceptable service levels.
Prudential called upon TCS for an innovative outsourcing solution that would reduce costs and ensure top-quality service. We responded with a comprehensive program to consolidate the various production management units into a 24/7 support center at an offshore location with over 95 percent of the support in India. This resulted in a dramatic initial operational cost savings of 50 percent. More crucially, however, the migration was done with negligible impact on service levels.
We were able to achieve such a smooth migration due to our highly refined transition model, which helped Prudential understand what was required of its team, how the process would flow, and what we would accomplish and by when. This proven process allowed Prudential to transition responsibilities of the applications and to realize immediate cost savings through the offshore service delivery model.
We were so confident that our approach could sustain excellent service levels while continually reducing costs that we gave a written commitment for an average five percent reduction in annual cost of services for the life of the five-year contract. We would achieve this result for our client through productivity improvements, process efficiencies and cross training.
Prudential is now poised to devote more assets to building systems for the future, confident that its policyholders are getting the quality service they have come to expect from a market leader.
- Initial reduction in cost by 50 percent
- Average 5 percent continuing cost reduction year over year
- Consolidated the Pennsylvania, Florida and New Jersey Production Management operations into one location in Chennai, India
- Flexibility to grow or shrink to meet business demands – On-Demand Business Model