2012, a Leap Year—Leap to What?

by Karen Wolfe

Bob Wilson of WorkersCompensation.com wrote this tongue-in-cheek comment regarding technology in the Workers’ Compensation industry in his Top 10 Predictions for 2012 1

“3. Technology will continue its relentless march
The workers’ compensation industry, which prides itself on its use of cutting edge, innovative technologies, will discover that the internet is on the computer now. Some in the industry will launch an aggressive, 10 year implementation plan, or at least put together a feasibility committee, to exploit, or at least study the potential to exploit, this stunning new capability.” 1

We all know technology is hardly embraced by the Workers’ Comp industry. That technology is employed at all is only because it is the easiest and most cost-efficient way to document the claims management process. But to use technology beyond documentation, to actually leverage newer technology to achieve better outcomes, is not the “go to” methodology in Workers’ Compensation.

Change avoidance
It’s human nature to resist and avoid change, especially in the area of technology. Technology is foreign territory and only minimally understood by most people. Business managers are forced to relinquish control of their processes to the technical magicians. When that happens, they cannot monitor or control their projects because they do not have the unique knowledge and skill to stay involved. That is contrary to the nature of business managers, especially when they will be held accountable for the outcome anyway. So many managers simply do not go there.

Avoid pain through outsourcing
Nevertheless, Bob is right about this: the Workers’ Comp industry can embrace the Internet now and in entirely new ways. However, rather than trying to reinvent and develop the solution themselves, they can choose to outsource to those who have already created the solution. Outsourcing to vendors providing Internet-based software (Software as a Service, Saas) technology where design and development are complete is an easy, painless, and affordable leap to technology and to improved results.

Outsourcing avoids the cost of hiring subject experts to plan the new system and technology experts to design technical specifications and develop the new system, both time-consuming and costly efforts. The SaaS outsourcing approach also avoids software installation and maintenance. It maximizes the time-to-benefit opportunity. It is instant-on.

Still, outsourcing can offer even more.

Collaborative applications
Through outsourcing, organization can benefit from comparative studies where their performance is measured anonymously against others. For example, they can access the vendor’s full data set to identify best-in-class providers in a geographic area where their own data is limited.

Chasing technology
Technology continues to advance at an amazingly rapid rate. When organizations choose to build systems internally, they are required to sign up for keeping pace with evolving technology. On the other hand, when they outsource, they shift the updating burden to the vendor.

Not invented here
Traditionally in technology, resistance to outsourcing has rested in what is known as the “not invented here” syndrome. The implication is that if it is not invented within the organization, it won’t fit the needs of the organization and will not be as good. The “not invented here” syndrome (stated or implied) is also a means of resistance by internal IT departments, thereby protecting their own territory.

However, outsourcing is more correctly viewed as an extension of IT, an exponential complement to internal resources. Because the system design, development and implementation and maintenance are inclusive from the vendor, resources for new creative thinking and customization are more readily available. Rather than starting from scratch, jumping on board at the completion stage can be far more rewarding.

Outsourcing, a fait accompli
As the New Year commences, a leap year, organizations can leap to applying technology to maximize results. Workers’ Comp professionals can refute their regressive reputation by leaping directly to outsourced technology, thereby enjoying its benefits of using technology to boost claim cost control and improved outcomes. With outsourcing, improved performance is a fait accompli.


1 From Bob's Cluttered Desk, Bob’s Top 10 Predictions for 2012 30 December, 2011
Robert Wilson is President & CEO of WorkersCompensation.com