The comparison may seem a bit unrealistic, but it is certainly applicable because just like an insurance policy, business process outsourcing also helps in protecting business interests. This is especially true when it comes to providing adequate protection against unpredictable and unforeseen events such as hurricanes, earthquakes and other natural disasters. Depending on the actual situation, all of these events can create grave problems and issues and can affect vital business interests such as customer service. An insurance policy can also provide protection, but since most often insurers do not agree to all of the claims made by the insured, outsourcing proves to be the better option.
So, how actually is outsourcing better than an insurance policy? Well, it’s simply because most of the world-class outsourcing hubs are located in developing countries such as India, where occurrences of unpredictable events such as hurricanes are relatively fewer. Businesses that choose outsourcing over insurance can thus rest assured that their vital business interests will remain protected even when a category 5 hurricane might be threatening to stall business operations and cause unimaginable damage. Moreover, since businesses can also expect to derive the conventional benefits such as cost savings and efficiency improvements, business process outsourcing does turn out to be a lot better than a standalone insurance policy.