ERP Software & Business Accounting Software to Support Your Growing Business Needs

Popular ‘shrinkwrap solutions’ Quickbooks and Peachtree have been the launching point for many a business. These products are easy to use, flexible, and with the built-in two dimensional reporting, are outstanding for accounting, and even some advanced application areas like project billing and procurement management.

When is it time to move on, some company owners may ask? While there are probably 50 or so good reasons, but for the purposes of this article, I will highlight a few. If you are running a standalone Ecommerce solution that does not tie to your accounting system, that may be reason one. If you are running a simple sales force automation system like ACT!, Salesforce.com or Goldmine, and the quoting and customer master records are not tied to your accounting systems items, that may be another. In both these examples, integrated systems allow you standardized pricing by customer, item, promotion, or even dealer (partner).

The biggest justification may come with people running simple production planning and scheduling functions on spreadsheets. By passing around spreadsheets, companies are wasting time, and errors can be easily made. Also, once your production scheduling is complete, there is usually no ‘put back,’ to the accounting system. The justification for a systematic planning and scheduling system tied to your back office may be in inventory reduction, improved customer service, or lead-time reduction. If you can add an ‘available to promise,’ to commit an order to a key prospect or customer, you may be able to improve your top line as well.

From an IT infrastructure standpoint, you may start to wonder why the servers in some hidden room in your company are growing. Well with all these disparate systems, it is often time easier to add a server than to try to consolidate applications on one server. This adds complexity and increases your reliance on costly IT personnel.

Find an online, subscription based solution that combines ERP, CRM, Ecommerce and business intelligence in one simple solution. All you should need is a web browser and a high speed line. In summary, small companies can benefit by:

1) Reducing the ‘islands of automation,’ that require rekeying and are conducive to mistakes

2) Reduce the dependence on internal systems and IT personnel

3) Dive into advanced integration application areas like aftermarket service, planning/scheduling, Ecommerce and configuration management and comprehensive sales force automation.

Xero Accounting Software: Pricing, Features, Reviews & Comparison of Alternatives

What Is Xero?

The award-winning accounting software, Xero, is one of the favourite financial collaboration apps available in the market. The software is heavily popular among leaders and top players in the accounting category.

The design of Xero is set to meet the requirements of small businesses, irrespective of their industry. The popular app is often the handiest asset for an accountant to manage their financial activities. What makes Xero great is its friendliness and usability while assembling top-notch features that help close important gaps in accounting.

A great advantage that Xero boasts is even someone with zero accounting knowledge finds it easy to manage, as even the most standardized and complex financial concepts become enjoyable. For instance, one can trace back double bookkeeping to the origins of the business, but Xero breaks the stigma of it being uncomfortable by non-expert users. The logic and the terminology of the accounting practices stay intact, but operations become simple for even a commoner to understand and use as per their business needs.

The ease of use and makes Xero a noteworthy name among the top-ranking companies around the globe, outperforming the accounting job than most prominent players in this competitive industry. Even though one feels that they do not have ample knowledge in the best accounting practices, Xero’s certified advisors’ guidance assists you all the way along the journey.

Founded in New Zealand in 2006, Xero has been recording outstanding growth rates on the global markets, especially in Australia, America, UK and Europe. Today, over 475,000 business and sole accountants are using Xero. Partnered with various accounting systems and third-party apps, Xero extends its usefulness in making your accounting journey a smooth outing.

Pricing

Xero offers variable pricing plans that suit your unique business needs. Currently, Xero no longer includes payroll and has put limits to a few features likes expenses and multi-currency support to its most expensive plan. However, each plan offers unlimited users and live bank feeds, letting businesses download, categorize, and perform their transactions as usual.

The accounting software offers three different pricing plans, which are billed monthly. One can cancel the subscription plan at any time they need, but with a notice period of a month. Xero offers a free trial period of 30 days with a demo company set up for one to explore the software before buying it. A nonprofit organization or owners of multiple companies can avail discounts from the accounting software company.

Let us have a look at the pricing plans by Xero:

Starter

Xero’s Early plan costs $20 per month and is ideal for freelancers, sole traders and new businesses. The plan includes:

  • Sending up to 20 invoices and quotes
  • Entering up to 5 bills
  • Reconciling bank transactions
  • Capturing bills and receipts with Hubdoc

The optional add-ons include claim expenses and track projects for $4 and $7 respectively.

Standard

The standard plan costs $30 per month and is ideal for growing small businesses. The plan includes:

  • Sending invoices and quotes
  • Entering bills
  • Reconciling bank transactions
  • Capturing bills and receipts with Hubdoc

The optional add-ons include claim expenses and track projects for $4 and $7 respectively.

Premium

The premium plan costs $40 per month and is ideal for established businesses of all sizes. The plan includes:

  • Sending invoices and quotes
  • Entering bills
  • Reconciling bank transactions
  • Capturing bills and receipts with Hubdoc
  • Using multiple currencies

The optional add-ons include claim expenses and track projects for $4 and $7 respectively.

Features

Bank Reconciliation

Xero imports all financial transactions into its database, before linking them to the corresponding accounting transactions. On confirming the match, the transaction will be reconciled in the system. The application can import feeds from more bank accounts, credit cards and PayPal accounts. The software also lets you perform more complex transactions by creating your custom rules. You can import and automatically reconcile pre-coded bank statements with the fast cash coding feature.

Dashboard

The Xero dashboard lets business owners get a complete picture of their key accounts, income and expense reports, upcoming bills and pending invoices, helping them understand all their company’s financial activities. You can turn on notifications to monitor certain accounts if needed.

Xero’s dashboard is easy to use and navigate and helpful for the user to understand every information they need. You can also perform tasks such as adding accounts, bills and issuing invoices in the dashboard.

Invoicing

The invoicing system is an important part of the accounting suite, helping you in generating and customizing business invoices. You can add your company’s logo, perform foreign currency conversion, and save different templates for separate clients.

The system can issue invoices for payments from various sources like PayPal accounts, bank transfers or credit cards. Xero’s invoicing tool provides alerts when your invoice has been opened by the recipient.

Xero can automatically convert the invoice into the currency used by the client, reducing the burden of manual conversion.

Security & Automatic Updates

Security is highly important for a cloud system that holds private information, making it safe from hackers and other malevolent attackers. The developers understand the threat, hence providing a dedicated security team to keep the data safe.

Xero team strive for constant improvements to their service, adding new features constantly. This ensures that the efficiency of the app and your user experience is always optimal.

Competitors

QuickBooks

QuickBooks is a cloud-based accounting solution, helping small businesses in managing their accounting and finances. A customer can view all accounts with auto-synchronization. The necessary accounting and client communication feature can also be done on their native iOS and Android apps.

Zoho Books

Zoho Books is another smart accounting solution, which is ideal for small businesses in helping them manage their business and cash flow. The app is user-friendly, has a clean design with vital features to generate actionable, data-based insights.

FreshBooks

FreshBooks is an award-winning robust cloud accounting app, ideal for small businesses to make easy billing. The software lets users manage key processes with ease while providing special modules to manage projects and taxes.

Ending Notes

With ample integrations and strong features, Xero is an ideal software for accounting purposed. With multiple automation, the application saves your business time in performing otherwise manual tasks. Hence, Xerox is the ideal accounting software for businesses.

3 Tried & Tested Insider Keys to Captivating Your Audience

Do you know that the average attention span of a human is less than that of a goldfish? Wait, you had heard that already, but you forgot, didn’t you? I know I did.

In 2015, a Microsoft led study concluded that the average human attention span has fallen from 12 seconds in 2000, to eight seconds over the last 15 years. The same researchers also found that the ability of humans to multitask has improved.

Your job as a speaker is getting more difficult with each passing year. Your audience is now checking the stock market, texting their family, dispensing a treat on their connected dog app, maybe even taking a selfie while they are supposedly listening to you. Phew! Is it any wonder that you now have to work twice as hard to capture their attention? No matter how good you already are, you will have to skill up your game significantly.

#1 Have a conversation

I work with a business leader who captivates audiences. Every time he makes a speech, he steals the show. Audiences can’t have enough of him, and other speakers prefer not to take the stage after him. I asked people why they love him, and the universal response is he makes them feel like they are having a personal conversation, the message directed specially to them.

If, like him, you want your audience’s unwavering attention, converse with your audience, don’t just talk at them. Speak, then pause and listen. Keep your audience active and focused on you, making them a part of your speech.

Here are some easy and fun techniques we use to involve the audience:

· have a show of hands

· use technology to conduct an “in-room” live poll

· leave some blanks on your slides and invite the audience to guess or fill these in

· ask for volunteers to help you demonstrate a process

· after you share an idea, give them a minute to practice it

· share an idea, and ask the audience how they would apply it to their own situation

#2 Tell a Story

I heard you groan, didn’t I? It seems like storytelling is the new “it thing”, and everyone wants in on it. Yes, that’s because it works.

Everyone loves a good story. It’s the earliest form of human communication. Stories are how children first learn to understand the world around them, and it works just as well later in life. So, use a story to set up your theme, weave a thread through your speech, and direct your audience’s attention to your key messages.

Recently, I was prepping a speaker who wanted to showcase the value of industry ecosystems as enablers of the Internet of Things. To set up this assertion, we told a story from India’s struggle for independence. The Sepoy Mutiny of 1857, aka India’s first revolt against British rule, may never have come to fruition if in 1851 the East India Company had not laid the foundation of a railway network in the country. For decades, there had been escalating unrest among various sections of Indian nationalists, and it was manifest as isolated small-scale protests scattered across the country. These uprisings had failed to capitalize on each other’s momentum?-?for lack of communication and coordination.

The Sepoy Mutiny began in the barracks in Meerut, when the soldiers rebelled against the use of cow and pig grease on bullets. At any other time, this is where it would have started and ended?-?but this time was different. The railway network?-?which connected a few major cities in the northern and central parts of India?-?enabled news of the uprising to spread. It also allowed for congregation of the various mutiny leaders in a short period of time, and transformed a localized mutiny into India’s first war for independence.

We then drew a parallel between this episode and how different industry clusters are going to ride the network (internet) and collaborate to build the Internet of Things. This helped the listeners to visualize the network as an enabler of ecosystems and growth.

#3 Timing is Everything

The way people process information is changing. A 2010 study asked students to self-report lapses in attention while attending three lectures, with different speakers and teaching styles.

The results revealed a pattern of attention loss, with “spikes” at

· 30 seconds into the lecture, indicating a “settling in” period

· about five minutes after the initial distraction

· seven to nine minutes into the lecture

· nine to ten minutes in, just a couple of minutes after the last spike

I have found that it is possible to keep your audience engaged, when you use attention-heightening techniques to counteract these attention lapses. Nudge the audience into active listening by varying the tone and pace of your delivery. Display a striking visual or write on a flip-board to keep their eyes focused on you. The conversational / interaction tactics we discussed earlier work particularly well at these times.

Save Your Small Business – 10 Crucial Strategies to Survive Hard Times Or Close Down & Move On

If there were ever a timely business book, “Save Your Small Business: 10 Crucial Strategies To Survive Hard Times or Close Down & Move On” by Ralph Warner and Bethany K. Laurence is certainly it. Promoted as a road map to small business survival, Warner and Laurence provide simple, no-nonsense, steps that can make a huge difference in running, saving, or if needed closing, your small business. Running a small business has always been hard, but currently it can be brutally agonizing, if not downright scary. This guide may just provide you with the information to make today’s bad economy, or bad economies in the future, opportunities so that in good times your business will be poised to thrive.

The book starts out saying it will be your small business companion, and recommends you create a business survival plan, prepare a current profit-and-loss statement and cash flow analysis, and establish an advisory board. It the delves into chapters that will provide the tools to help you decide whether it makes sense to continue, hibernate, close, or sell your business and offers some strategies you can implement to get your business back on track.

Chapter One: Can You Save Your Business? This chapter discusses topics such as planning for short and long term, selling your business, putting your business in hibernation, and saving your business. It also looks at some special considerations for retailers, services, construction, restaurants, wholesalers and importers, and franchises.

Chapter Two: Don’t Ignore Bad News. Why you can’t wait, cutting costs, changing direction, quitting and selling are addressed. There are also strategies on determining how much to cut expenses and acing slowly to reverse cutbacks.

Chapter Three: Control Your Cash Flow. This area can be one of the most important, especially for the small business. Topics include: Keeping paying your bills on time, how to create more cash, and what not to do, such as using merchant cash advances, maxing out credit cards, and borrowing against your house.

Chapter Four: Minimize Liability for Your Debts. Are you personally liable for business debts? Liability for jointly owned debt. What can creditors do if you don’t pay? Prioritizing debt payments, including payroll, taxes, utilities, and many more.

Chapter Five: Concentrate on What’s Really Profitable. Face it, the goal of a business is to make a profit. This chapter looks at getting a quick profits plan on paper, making money in a service business, and making money in retail or manufacturing. It is a short chapter, but if it gets you thinking about making a profit, it has done its job.

Chapter Six: Innovate on a Shoestring. Invention, Copying, Serendipity, and Making Innovation a Continuous Process are addressed in this chapter. This chapter may inspire you to brainstorm the next wonder gadget that every household must have. Depending on your business, this may be what you need.

Chapter Seven: Identify Your Customers. Before you can create an effective marketing plan, you need to know who your likely customers are. This chapter discusses aiming at the bull’s eye and filling in your target. Topics include current customers, need, price, access, and experience.

Chapter Eight: Don’t Waste Money on Ineffective Marketing. If we only knew which of our marketing efforts were producing the best results. This chapter helps you determine things about your marketing such as: Marketing the right products or services to the right people, not spending big dollars on advertising, asking long-term customers for support, encouraging customers to recommend your business, using paid listing effectively, marketing on your own website, and holding a “trying to stay in business” sale.

Chapter Nine: Handle Layoffs Fairly – And Keep Your Best People. Laying people off is often one of a business owners most dreaded tasks. This chapter provides guidance in this area by looking at: Making a wise layoff plan, the logistics of a layoff, and keeping the great people you hire. Some very good advice for this unfortunate part of business.

Chapter Ten: Don’t Work Too Much. What? If your business is floundering, you must work more, right? This chapter tackles the subjects of the importance of a sane schedule and how to work less and make more. Priorities and delegation are the keys the authors discuss.

Chapter Eleven: Work With Your Best Competitors. The four areas this chapter covers include: Treating competitors with respect, getting business from competitors, working for competitors, and working with competitors.

Chapter Twelve: How to Close Down Your Business. Most people don’t ever want this to happen, but the reality is that it does. This chapter offers some good strategies if you decide it is time to close the business and do something else. Topics include things like creating a closing team, looking at contractual obligations, dealing with landlords, collecting bills and selling off inventory, notifying and paying employees, liquidating assets, notifying creditors and customers, paying your debts, paying taxes, and dissolving your business entity. This is not a pleasant topic, but unfortunately an important one if you find yourself having to go this direction. The book provides guidance in the process.

Chapter Thirteen: Dealing With Debt: Bankruptcy and Its Alternatives. Introductory chapter on these topics with some good advice, but you will need more resources if you choose to go down the bankruptcy path, or better yet, seek counsel from a qualified professional.

Appendix A provides guidance on preparing a profit and loss forecast and a cash flow analysis. There are more complete references on these out there for sure, but this short bare bone basics on them will get you started and at least help you determine where you are at.

“Save Your Small Business” is a good guide for the struggling small business owner, and also provides information for the small business owner who doesn’t want to fall into hard times. Educating oneself regarding business is crucial for small business success. This is one more Nolo title that will help small business owners hopefully survive, but also liquidate and close with less pain if that is the course that must be taken.

Hire A Team of Dedicated Designers & Developers – Save Time and Money

Designing, development and maintenance of a web page is a complex and costly process. So if you are planning to develop and run a website you might have considered various alternatives of hiring professionals. Usually, the first option that many people consider for developing their own website is to hire in-house professionals, but this has its own disadvantages. Whereas concept like outsourcing is gaining popularity at tremendous pace. In fact, hiring full time dedicated web designers and web developers from specialized firms have emerged as best options in saving a lot of time and cost. Today hiring a team of dedicated web designers and developers can let you enjoy numerous benefits like:

o You can be benefited with hire on demand policy i.E. To hire a resource just when you need it and for the duration you need it.

o You can monitor quality and progress with direct communication channels. Usually dedicated resources will be connected with you via online chat, email or client support system

o You can just relax and be sure of your work done with quality and as desired with full time designers and developers. By the time you can concentrate more on core business activities instead of project development

o You can hire highly skilled professionals easily having vast expertise in this field.

o You can have better control on your projects as professional it outsourcing company and maintain complete transparency on your project growth along with regular update on the progress in real time.

How dedicated resources can work for you?

o Dedicated professionals work on hourly or monthly basis completely for which you will pay them

o Professionals are highly skilled and maintain high standard of work.

o You get regular updates on work status.

o You pay comparatively lower and transparent amount for the services.

o You do not need to burden yourself with issues like hr, payroll and infrastructure.

o You do not need to spend your time, effort and money for arranging resources for the professionals to work for. You can hire an offshore it office for at free of cost. All you need is to pay for the services.

o Dedicated web designers and developers are scalable and agile in terms of requirements.

While we are talking about outsourcing, it is just impossible to ignore India’s highly skilled and proficient web designers and developers. The key point to note is that in recent times many Indian it web solution companies have seen a huge upsurge in service providers offering dedicated web designing and development services. Mostly all of them take full responsibility of website maintenance and thus hiring dedicated designers and developers can give you a good return of the invested money. So if you want your website to be competent in terms of technology, it is always better to take help of expert web designers and developers. By following this simple yet effective approach you can easily concentrate on other important issues like business expansion and growth.

Newspaper History – The Origin of Newspapers in India & Around the World

Origin of Newspapers:

The History of newspapers is probably one of the most notable episodes of human experience. The origin of newspapers dates back to Renaissance Europe. It was during this period that local European merchants began the habit of distributing handwritten newsletters amongst each other. However, it was the German people who introduced the earliest forms of printed newspapers way back during the 1400s. Since then the outlook of newspapers has undergone tremendous evolution. In recent times the total number of newspaper count has increased to a mammoth 6580. A normal newspaper of today comprises of various sections like editors’ columns, forecasts, comic strips, entertainment section, newspaper classified ads, newspaper display ads and much more. Unfortunately the financial downturn has hampered the growing rate newspaper classified advertising, simultaneously encouraging the rise of web -based newspapers or e-papers.

History and origin of newspapers in India:

The history of newspapers in India is equally intriguing. The introduction of newspapers in India was actually the result of spreading sense globalization amongst the countrymen. These countrymen craving for updates around the world demanded for a source that gratified their thirst for knowledge. Finally the first newspaper of the country was introduced in Calcutta (Kolkata). Titled Calcutta General Advertise or Hickey’s Bengal Gazette this newspaper was the brainchild of an eccentric Irishman called James Augustus Hickey during the 1780s. Soon newspapers like Bombay Herald and Bombay came into being following the success of their precursor. Over the years the country has witnessed the rise of multiple newspapers dailies out of which broadsheets like Times of India, The Telegraph, Hindu, Hindustan Times, The Statesman, Economic Times, Ananda Bazar Patrika, The Tribune etc have become the highest circulated newspapers in India. The idea of booking classified ads and display ads also grew along with the growth of these national broadsheets.

Sourcing Superstars – Alok Aggarwal & Marc Vollenweider, Evalueserve

Q: Tell us how Evalueserve got started: how did you meet and how did you start to do business together?

Alok Aggarwal: I basically came to the US in 1980, did my PhD in computer science in Hopkins in 1984, joined IBM’s Research division in 1984 and then was there for 16 years; I started IBM Research Lab in Delhi, and became the director in 1997. This was the time that dotcoms were taking off, so one of the strategies was that we should open a lab in India because we were losing researchers to dotcom start-ups in the US. So I was given the charge to open a lab in India and in 1998 I moved with the family to Delhi; I started the lab in April 1998 and grew it to about 35 PhDs and 35 Masters.

Marc Vollenweider: I’m 100% Swiss, graduating as an electrical engineer with the Swiss Federal Institute of Technology in Zurich. Then I joined McKinsey as a greenhorn, as a business analyst; I spent a year at McKinsey – this was 1990 – then in 1991 went to INSEAD in Paris for my MBA. Then I rejoined McKinsey and stayed in Switzerland and got elected partner in 1998. Then in 1999 I moved to India with McKinsey as one of the partners in the consulting practice, where I was in charge of the healthcare practice and lots of other stuff. And then I also got the responsibility for the so-called McKinsey knowledge centre, which at the time was an initiative led and pioneered by Rajat Gupta, the then global head of McKinsey.

The goal there was essentially to come up with a research hub that would support the consultants around the world with high-quality quick research. So say you had a question – how many companies were there with these and these criteria – you’d send an email to India and some busy bee worked on it and sent back the answer in a ZIP file and then in the morning you’d come back to the office and you have the answer ready for you. We started out from an initial team of 12 and ramped this up to 120 MBAs between the years 1999 and 2000. And this was a pure captive, only catering to McKinsey internally. And then it became clear to me that this could be an interesting third-party business model, so that’s why in March/April in 2000 I started thinking about setting up my own company.

AA: We met, interestingly, because of a birthday party for the kids, who were going to the American Embassy School in Delhi. This was, I think, early May 2000. When we started talking we realised that he was thinking about one aspect of research and analytics and I was thinking about another aspect; so, why don’t we create a company that provides all kinds of research and analytics services and other high-end services related to having knowledge expertise? So we both met several times during that period – July/August 2000 – and quit McKinsey and IBM in November 2000 and started Evalueserve (which stands for “evaluation services”) in December 2000.

Q: When you set up by yourselves was there any McKinsey money involved?

MV: No, there was a clean cut. Alok and I put in the money, our own money, and there is no institutional money from McKinsey. We’re privately held, and we hold the vast majority, and then we have a Swiss private equity investor, you could call him a super angel… So during the initial years 2001, 2002, 2003 we needed some money to grow because we turned profitable in 2002, which is actually pretty good, but still if you then grow at a rate of 100% the single biggest capital consumption item is actually not office space or computers: it is accounts receivables. Because you essentially prefinance your revenue; because the cost of people on your balance sheet, they’re there but you don’t get the revenue. So you need to balance that and then you grow at 100% and you need some money, even though you’re profitable. So we picked up some money in very small slices and we had five mini-rounds – maybe even micro-rounds, you know, $100,000 here, $100,000 there – over the course of the next five years. We haven’t taken up any money since 2005.

AA: Seven and a half years later, we are about 2,500 people worldwide. Out of these 2,500, about 60 of us are client engagement managers; so we do business development, we do sales, and with the right hand we hold our clients and with the left hand we hold our professionals in our back-end research centres. Because we are very involved in client delivery and client management, all 60 work out of home offices; we have about 28 in the US, two in Toronto in Canada, about 25 in Europe of which 11 or 12 are in the UK, with the UK being our second-largest territory from a sales perspective. Then we have one in Shanghai, one in Hong Kong, one in Singapore, one in Australia, and one in India. So that’s roughly our team of about 60 people.

Our back-end offices, which are really bricks-and-mortar offices, are in China, Romania, India, and Chile – so rather than “BRIC” we call them “CRIC-and-mortar”… India was the first one that we opened in December 2000; we currently have about 2,130 people in India. China was the second one, with 160; we provide services in Japanese, Chinese and Korean languages and related knowledge services out of there in these three languages. In Chile, we are based in Valparaiso, about 45 minutes from Santiago; we provide services in Spanish and Portuguese from there, and we cover the Latin American market as well as the Hispanic market in the US, which has been growing quite rapidly – it’s about 10% of US GDP right now and is expected to double in the next 20 years. This helps us not just in covering these languages and various countries and cultures and customs; this also helps us in providing 24/6 average because rather than people working during night-time in India or China, we’re able to transfer – in a smooth manner – work to Chile.

Romania is particularly interesting for us because the place where we are, Cluj, is a university town with quite a few people who speak German very well – so we will be able to cover Germany, Austria and Switzerland quite well. Also we can cover Eastern Europe, in particular Russia, Ukraine, Azerbaijan and so on, Romania itself, Poland, Hungary; that area is growing quite rapidly with the oil outflow from Russia and some of the other eastern states, and hence expected to do very well. So with that we are basically providing knowledge services, most of them are research and analytics, some of them are middle-office work, but all are knowledge services for banks, pharmaceutical companies, healthcare, technology, media, telecom, and so on.

Q: What do you think have been the biggest challenges you’ve come across during the life of the business, and how have you managed to get past them?

MV: I think it’s fairly straightforward. These 2,500 guys need to be busy. Marketing and sales, that’s the single biggest challenge, always; initially – we call it the “double chasm” – initially when we went to meet people we went in and said “hi this is Evalueserve”, and they said “oh, so you want me to outsource my strategic research?” And this was chasm number one, because nobody had done this before: it was a completely new concept; nobody had any idea that this could be done. So that was a huge hurdle.

AA: Obviously there did not exist this kind of offshore outsourcing kind of work until the 2000, 2001 timeframe. The only company that was doing it was McKinsey Knowledge Centre, with about 120 people when Marc left; American Express was doing some amount of credit card analytics, probably another 100 people; and General Electric out of its captive was doing maybe another 200-250 people doing card analytics. So total number of people at the end of 2000 when we started was only about 500-1,000. This industry has grown to about 75,000 in India alone, if you look at the whole knowledge services or knowledge process outsourcing industry, so there has been a fairly strong growth in a fairly short period of time. And that of course comes with its own challenges, because humans are not like robots; the skill that knowledge services industry requires and the knowledge process outsourcing industry requires is a fairly detailed deep knowledge and people need to get some sense of it – you learn partly by experience and by doing the projects.

MV: And then the second element was they were saying “and you do this from India?” and then we have to say: “Yeah, it works really well from India”. This is really the double chasm. And to overcome this, to launch a new concept, that was really the challenge. And then the next challenge was to build a scalable sales force. You know, now we have about 50 salespeople and these are obviously highly expensive people. So we have to find a model that was actually scalable and was economically feasible. And that I think was the second really really big challenge.

Q: How do you go about recruiting those specific skill sets?

MV: By now we know what works. So these would be people with, for example, an ex-Reuters background, or an ex-research background where they had to sell research – salespeople in the services-for-research domain, I would call it. So these are the kind of people that work very well. Then there are maybe slightly more remote or people who have worked in their respective industries, say in marketing departments or so, and have an angle into sales – who want to move into sales. So you can say the common elements are that there is a sales angle, there is the understanding of how professional services work angle, and then there is an industry angle, and if these three elements work together well, then usually we have successful sales people like that: typically between 30-40 years old, and roughly in that space of capability.

Q: What differentiates Evalueserve from the competition?

AA: Four or five things. One of them is our geographical reach at this point in time. We are more of a global organisation, so as I mentioned earlier we can provide services almost seamlessly 24/6 without having to have people working the night shift or the graveyard shift. The second is that with the very fact that we are 2,500 people, we are able to bring in areas that other people may not be covering, so we have a fairly strong vertical for example in oil, gas and utilities right now, that I would say most of our competitors do not have.

The third is that – I would call it serendipity as I explained earlier how Marc and I got together, it’s not that we had some great brand vision, it’s just happened by chance more than anything else – we are about 2 ½ years ahead of the competition. We were the first ones to start this whole KPO services business, define it and start it as a third party in a very well-defined manner, and fortunately we still, I believe, have a two-to-three-year advantage over most of our competitors. I mean for patent drafting, in intellectual property, we often see some of the comments made by our competitors and we say, “yeah, we were making the same sort of comments in 2005-2006”. So we know at what level of evolution and what state of evolution these people are in.

MV: Then I think it’s a portfolio of services which is very unique in our case; we’re purely research- and analytics-based, so we don’t do any business process outsourcing, or IT outsourcing, nothing of that – our 2,500 people are only doing bespoke research and analytics. This is how we differentiate against, say, an Infosys BPO, or a Genpact, who are also trying to have some activity in the KPO space. But we are pure-play. We only do that – obviously with the necessary focus. There are some niche players, and we are broader than such niche players.

And I think our service portfolio being investment research, which is sort of the space of investment banks, hedge funds, that kind of area; business research which is more like what markets do, what players do, what companies do, these kind of questions; market research which is more phone interviews; then data analytics which is more statistical software packages which you use to analyse large data sets; and then finally there’s technology analysis which is around patent analytics. That is a unique offering, which is highly synergistic in our case, that very few other people have.

Q: What qualifies as “KPO”? And are there any limits to what can be outsourced?

AA: It’s a very interesting thing. When we came up with this word, I think we had a very specific meaning. We very rarely use the word KPO in talks with our clients because to me it has become a word like “love”: everyone “loves” everyone else, but what does the word “love” mean?

What happened was, when we were starting there were a lot of call centres and BPO companies who were doing low-end finance and accounting, low-end HR outsourcing, credit-card processing work and so on. In 2001, 2002 – even 2003 – some of the news media and journalists would ask us what we did; we would say we’re providing research analytics, knowledge analytics services out of India, and they would always say “oh so you’re another BPO – is that a fair way of saying it?” And we would say “that’s true, but you know knowledge services are fundamentally different from just what a BPO is”.

Marc and Ashish [Gupta; Evalueserve’s CCO and India country head] were discussing this in 2003, and they basically said “we are actually a KPO” because knowledge is part of what we do, and the more we are able to provide knowledge, the more we can charge – whereas in BPO the charges are fairly well defined because the processes are well defined: the operator or help-desk that is answering calls, they can’t really charge much more. But here if you go up the value-chain – if the person has ten years’ experience in telecom and is able to provide deeper knowledge – even out of India we can charge $75-$80 per hour. In the US the corresponding rates are more like $400 per hour.

So in August or September 2003 one of the journalists from the Economic Times asked Ashish the usual question, and Ashish said “actually you know we are a KPO, not a BPO”, and he told me about it later. The journalist didn’t pick it up completely, he wrote an article about it and he said “Evalueserve talks about being a KPO” and I actually – being a researcher at heart – started doing research and we eventually defined what KPO was and how big the market size would be – about $17billion worldwide – outsourcing to low-wage countries like India and the Philippines and China. I gave a talk at Bell Communications in New Jersey in December 2003 and we wrote a paper in April 2004, and fortunately within a year the news media in India took onto the word KPO and it spread like fire.

So the difference between KPO and BPO is fundamentally the following: in BPO the process has already been well-defined, like how you’re going to answer a particular call, what are the levels of escalation that there would be and so on. In KPO on the other hand there is no such process. So you go to a patent attorney, for example, and you ask the patent attorney “we want to take a portion of your work and do it out of India” and he’ll say “are you kidding? There’s no way you can do it. The person who helps me out is sitting next door and we discuss the write-up with each other at least 3 or 4 times a day; this is an art, not a science, and there is no process involved.”

So the first thing in a typical KPO project is to actually convince the person and take a portion of that art out, and make a process of it so it can be moved to India, China, Chile, etc. But because it can never be completely taken out – because indeed there is a portion of it which is art which that patent attorney who is the “rock star” or the equity research analyst who is the “rock star” has in their heads – that 15%-20 % still remains in their heads and it has to come back, and for the project to be completed that 15%-20% still has to be completed by the person who is really knowledgeable and is in that country or that particular domain to do it. So that x versus hundred minus x as we call it, where x per cent is being done in the US or the UK, and 100 minus x is being done in the Philippines or India or wherever, is what differentiates a BPO from a KPO.

So, first, there is no process which can just be thrown over and get it back; secondly, knowledge is an important aspect of it, the higher you go up the knowledge chain the more in fact you can charge for the project, and thirdly some finishing touches – advice, opinion etc – which could be anywhere from 5% all the way to I would say in some cases 40%, would have to be provided by the front-end person.

Q: Where’s most of your research going? Is the direction changing over time – is there more, for example, technological patent-based research now?

MV: It’s growing proportionally. When you look at the breakdown we would do about 40 per cent of our work in investment research, for equity analysis for example, for investment banks, or for funds; about 25 per cent in the area of business research, which is more like “what is this market doing, here is a customized newsletter, here is a company profile,” that kind of work; then we would do about 12 per cent market research, and about the same size in intellectual property, and the rest is data analytics and knowledge technology. In terms of client breakdown we have again about 40 per cent in the financial industry; about I would say 20 per cent is professional services – consulting firms, research firms, law firms – and the rest is corporate.

Q: And is that changing at the moment?

MV: Not really, no – it’s pretty consistent actually. It’s growing more or less in line. It’s actually pretty surprising, it’s not really changing. We thought that the investment research would suffer a bit because of all this subprime crisis and so on but that’s not at all the case; in fact it increases the pressure on these companies to outsource.

Q: So what’s going to be the next big sector to hit KPO?

AA: I think pharmaceutical is very prone to it. The problem that the pharmaceutical area is going through is that the cost of producing the drugs and getting them approved by the FDA of the US, for example, has been rising at an enormous pace. Last year, for example, only 26 drugs were approved, and $39 billion was spent in research, development and approval. At the same time the population in most of the developed countries has been aging, so there has been more and more need for the drugs but there has not been that kind of money that can be spent on it. Whether or not the US moves into a socialized medical system is becoming immaterial as days go by: it basically is already socialized to a great extent with Medicare and Medicaid insurance programs.

So these pharmaceutical drug companies will have to do two things. One, they will have to find other markets to sell to, which will be India, China, other emerging markets, on the one hand – but again there the people don’t have that kind of purchasing power, so they will have to price their drugs lower; and the second is that they will have to somehow figure out ways of reducing the cost of their drugs. First inventing them and then getting approved – so a very, very ripe area where KPO would be beneficial for them.

Q: How do you think the drivers behind outsourcing are changing and what are the greatest threats?

MV: OK. Sometimes people say costs are increasing: increasing salaries and what have you. But in our case I have a reasonably simple answer to that. I say in our case we have a very simple strategy: we’re going to be in the five lowest-cost highest-skilled locations in the world. Which means that by definition I can prove mathematically that I am always going to have a cost advantage. Because, right, you’re always going to be in the lowest-cost highest-skill locations. So that’s going to be fine, I guess.

But the biggest challenges will be to add value to clients. This is not a threat, it’s more a challenge, because clients want more value-addition, more thinking, more – especially in our case – insight. They want productivity, they want global reach, they want 24×5… So when you look at how the service level has evolved in the past few years it’s been amazing. Today I can do things here which have been completely unimaginable even two years ago. So the speed with which things have been developing is increasing, actually. It’s not just linear, it’s even increasing.

The second point is, I think, the war for talent. The demands that people are putting on outsourcing players means that they have to have the capability to train higher, and develop people, and that means you have to have very very solid training processes – we for example have an initiative called Care for People, which includes different career track models, work/life balance, and lots of things. Getting this done is critically important. The third thing is leadership. Especially in the new economies you find that there is very little experienced leadership available, so you have to essentially coach people extremely well into leadership positions they would otherwise never be in. We have some people who are about 30 years of age and lead about 120 people. Now when I was that age I led about 15. So I think creating this leadership from within is a major element.

Other than that I don’t think there are major challenges because as we usually tend to say, the players in this space should actually collaborate in the sense of growing the market – because the largest part of the market hasn’t even been addressed yet, which is work that’s still being done inside companies – or even not being done! I mean the people who work with us best actually use us for growth; they don’t use us to cut costs. Very interesting, you know? They come up with new ideas and they use us to get their growth done. And these are the people who really use us very well. Maybe the war for talent thing is probably the biggest threat, because if the companies don’t do that well, they will lose out. That’s the thing.

Q: Finally, India dominates the offshore outsourcing market and has done for some time. Do you think that dominance is unassailable in the short-to-medium term, and if not why not?

AA: India has been growing so rapidly, both in terms of outsourcing but equally importantly in the area of domestic industry, which has been growing very rapidly. Both the outsourcing exports industry and the domestic industry have the same demand, taking the same or similar kinds of people, and hence the wages are going higher and attrition is quite large. I think even bigger than wage increases the risk is about attrition: what we call “job-hopping”.

I think one of the biggest challenges – and unfortunately again because these folks are young, they don’t actually realise it at this point in time – that India will face is this cultural shift that seems to be happening among the youngsters, the young people who are graduating, who just change jobs at the drop of a hat – and I would go further, maybe even without the drop of a hat. They say “ok this is boring, let’s move or” or “I’m getting a 15% raise from the next company, let me get my annual raise from Evalueserve, let me float my resume around, get another 15% raise from another company.”

What they don’t realise is that every time they move from one job to another, the last three months they’re not really doing any work for Evalueserve. And the first three months they’re learning the culture and the ways to do work at the other company. And hence six months of their life is wasted, where they haven’t really learnt much, and since this is all about knowledge, and learning, they’re screwed. They do this job-hopping four or five times and by the time they’re about seven years in the game, they’ve wasted about two years in the whole process. They basically have thrown themselves completely out of the market.

Because if we later look at their resume, even if we were to send their resume to a client saying we wanted to use this person, the likelihood is that the client is going to refuse, saying “you cannot use this person for my work, he seems to be changing jobs all the time, I don’t know what kind of knowledge he has, what kind of person he is”, and that as a whole – and again that is not particularly only to KPO, this is true about the Indian export industry in general, the export services industry which is IT outsourcing, BPO and KPO exports – is probably the biggest challenge to the Indian services exports industry.

Militants in Niger Delta – Bad For Nigeria, Could Be Good For Angola & Ghana

Like many developing nations with vast natural resources, Nigeria has seen a massive influx in Foreign Direct Investment (FDI), particularly in the energy sector. However, civil unrest, particularly in the Niger Delta, may be a catalyst for potential investors to look to other West African Nations as investment opportunities. Added to this are the ever present problems of ineptitude & “graft” within both state & federal government, which has brought some unwelcome news for Africa’s largest economy.

Last week, Russian giant Gazprom (OTC : OGZPY) announced that it was in discussions to inject up to $2.5 Bn into a joint venture enterprise with state owned Nigerian National Petroleum Corp (NNPC), with a view to developing domestic gas production, processing, and transportation.” Nigeria has an estimated 187 trillion cubic feet of natural gas reserves. Industry experts see the deal as a positive move by the federal government to utilize the country’s huge gas resources that have hitherto been wasted, it is estimated that Nigeria flares off as much as 14% (24 billion cubic feet) of global gas wasteage.

The Russian gas company is attempting to become involved with the Trans-Saharan gas pipeline (TSGP). The pipeline, which would connect the Niger delta in Nigeria and Niger, to existing gas transmission hubs to the European Union at El Kala or Beni Saf in Algeria’s Mediterranean coast, is expected to cost $10 billion, of which Gazprom will initially invest $2.5 billion. The project is due to commence in 2009 and isplanned to complete in 2015, when Nigeria hopes it will become one of the biggest sources of natural gas for continental Europe.

Livi Ajounuma, General Manager at NNPC, confirmed that “we have signed a Memorandum of Understanding [MOU]”. He commented further on the deal saying, “It’s a good thing. It means that a giant company like Gazprom can come to Nigeria.”

All is not as rosy as it may seem however, as the Russian Ambassador to Nigeria, Alexander Polyakov, staged a withering blow at Nigerian confidence this week. Polyakov has called on the Nigerian authorities to create a stable environment for foreign nationals who come to work in the country, to continue the flow of foreign investment and development of the economy. Over 200 foreigners and countless Nigerians have been kidnapped in nearly three years of rising violence across southern Nigeria. Some militants claim to be fighting for greater control over the Niger Delta’s oil wealth, however, other gangs of armed, jobless youths make money from extortion and kidnapping.

Polyakov urged prompt release of all hostages, including some Russians,currently being held by militants in Nigeria’s southeast Niger Delta region.”Everybody in the region and the government should play their role to ensure that all hostages are freed,” he said.

There are strong indications that investment inflow to the upstream sub-sector of the Nigerian oil industry has started dwindling as foreign investors now choose Angola and Ghana as preferred destinations over Nigeria. Which in turn, threatens Nigeria’s capacity to grow its crude oil reserves as planned, it is targeting 40 billion barrels proven reserves by 2010. Analysts have identified insecurity in the Niger Delta and weak fiscal policy as key reasons why investors are beginning to leave for more stable business opportunities in Africa. Recently due to militant activity Royal Dutch Shell (NYSE : RDS:A) has seen its production dropping from one million bpd to about 380,000 bpd at its Bonny terminal in the south of the Delta. Exxon has also experienced increased insurgent activity in its Nigerian operations.Last week, local union officials threatened to call a strike which would shut down crude exports from the River state, until such time as the issues are addressed by State & Federal officials. Nigeria is already suffering from production slow down due to militancy, currently the Niger Delta is only exporting 1.8 million bpd, compared with a targeted 2.2 million bpd.

Near neighbour Angola has now begun to attract more investments from oil companies as International Oil Companies are making long term expenditure commitments in the African oil ventures. Total (NYSE : TOT) said last week that it would continue with a $9 billion investment to raise production in Angola, despite the huge drop in crude prices since July last year. Total plans to stick to its major investments in Angola, even as it expects crude prices to recover, the company’s top official in Angola said.

“We are living through a crisis that has pushed oil prices to very low levels. Therefore, we are being extremely strict with all our investments,” Olivier Langavant, Director General in Angola, was quoted as saying in an interview with Reuters. “But the big projects (in Angola) like the Pazflor, which is a $9 billion investment, will be maintained.”

Pazflor, Total’s third production hub in Angola’s offshore Bloc 17, is expected to begin pumping oil in 2011 from water depths of up to 1,200 metres, according to the company’s website. Total is the third biggest oil producer in Angola after Exxon Mobil Corp. and Chevron, pumping, on average of over 500,000 barrels per day.

Chevron, Total and Eni are currently developing a $4 to $5 billion liquefied natural gas plant in Soyo, Angola. Whilst in contrast, Nigeria’s flagship Olokola, Brass LNG and NLNG Train 7 projects are yet to take off. Because of the high spend of the oil majors in Angola, oil service companies have begun to win big contracts. BP has awarded Halliburton more than $600 million in contracts for up to four projects in Angola.

Meanwhile, in Ghana, offshore oil finds in 2007 have led analysts to look at the small nation as becoming an “African Tiger”. Three vast blocks off of the West Cape Three Points are believed to hold vast reserves that may well outshine those enjoyed by Nigeria. The Jubilee field, one of West Africa’s biggest oil strikes in years, likely containing recoverable reserves of at least 1.2 billion barrels of oil equivalent, with first output scheduled for the second half of 2010. IOCs are lining up to take advantage, as smaller independent firms such as Kosmos Energy struggle to find capital to develop proven resources in the area. Kosmos is reputed to have a $3Bn stake in the area up for grabs, according to industry website Rigzone. The current breakdown of partnership/ownership across the three blocs which can be viewed here at AfDevInfo, also includes US independent Anadarko (NYSE : APC) & the UK’s Tullow (LON : TLW), along with various Ghanaian government run corporations.

This at a time when foreign investors in the Nigerian capital market withdrew some $4 billion from the Nigeria Stock Exchange kick starting a decline of over 50% in three months, according to its Director General, Professor Ndidi Okereke-Onyiuke. Coupled with an ever rising inflation rate, the highest for more than 5 years, is a major setback for Nigeria’s hopes of becoming a local economic giant.

Importing Mezcal From Oaxaca Into the US & Elsewhere: First Steps

You’re considering starting up your own brand of the Mexican spirit, mezcal, yet you have some doubts as to the viability of the project in this now burgeoning market for the lesser known cousin of tequila. Alternatively, you’re just having a bit of difficulty understanding all of the steps you either must take or have as options. You want to be a part of the boom; perhaps as an ardent no-holds-barred capitalist who jumps on opportunity when it knocks. Or alternatively as someone with pure passion for mezcal and its hand-crafted production methods and rudimentary tools of the trade. Maybe you’re somewhere in between. Is there still room for your project given that virtually every month there is a new product line in the market into which you want to export from Mexico? You likely have your eyes set on importing from the southern state of Oaxaca where the lion’s share of the agave based spirit is distilled.

The simple answer to the question about market saturation is yes, there are still practical business opportunities. But this assumes that you have a reasonable price-point for the quality of mezcal you have in mind, and a solid distribution/promotional plan.

Start out by learning as much as possible about the regulatory framework of the jurisdiction in which you want to distribute mezcal. On balance it is very different from how you would go about importing and selling shirts, microwaves or sofas. Presumably you already have at least a cursory understanding of alcohol distribution in at least your home country. But remember that, for example, with respect to Canada, there are governments (i.e. of the province of Ontario) which control at least some aspects of all liquor, beer and wine sales. If you are considering the US, there are some states which are subject to the three-tier system. Accordingly, take your time and learn before diving in.

There are matters which you should at least consider even prior to visiting Oaxaca with your mezcal business in mind. They impact the extent to which your plan will be feasible and more importantly successful. Think about:

  • ABV (alcohol by volume) of the spirit, because making that determination will impact the price you pay for your mezcal and the ultimate retail cost to consumers, and will have an effect on your target market. It must be somewhere between 36 and 55 percent, although it is suggested that the closer you get towards the bottom end of the range, the less successful you will be in attracting those who are already aficionados of the spirit.
  • Packaging in terms of bottle, top, labeling including sealing. Are you considering a stock bottle, or having a mold made? Will it be more or less standard 750 ml shape, or do you have a more squat bottle in mind with a shorter neck. If the latter, the weight and form might adversely impact the extent to which bartenders will be inclined to grab it from a shelf containing several other products. Are you considering natural as opposed to artificial cork, and why? Would you prefer putting your money into the label rather than a costly heavy bottle? If leaning towards the latter, realize that a pallet for transporting might accommodate only 500 bottles as opposed to 900 bottles, thereby increasing your ultimate cost per unit.
  • Whether you want your mezcal to be priced high-end, middle of the road, or inexpensive.
  • Deciding upon whether you’ll be selling only blanco / joven (un-aged clear), or considering having an aged mezcal in your repertoire. Why?
  • Will you be starting out with just one agave specie such as espadín and then over time expand your offerings, or hitting the market guns blazing? Don’t forget that there is a middle ground.
  • Deciding if you will initially be working with only one palenquero, or more. Do you expect exclusivity over all of your palenquero’s certified mezcal, and recognize that at least initially this might not be in his best interests?
  • You might want to consider a start-up plan of approach, working out an arrangement with a palenquero who is not yet certified and is seeking capital in order to go that route whereby he, through you, has access to the export market, either domestic or international.
  • Is the plan to import ancestral (typically distilled in clay and crushed in a relatively rudimentary fashion) or artisanal (traditionally distilled in copper alembics? There are other permutations in and differences between these two categories.
  • You should consider whether or not you would be prepared to live in Oaxaca, or at minimum visit the city / region of the state where your operation is located a few times a year. Alternatively you might have one or more full-time staff to run it.
  • Can you afford to embark on a project which might not necessarily produce sufficient revenue for its continued viability?
  • What type and amount of capitalization are you considering?
  • Determining the most prudent approach in terms of numbers of bottles to initially import into your market, and the long-term goal. This will likely impact your decision on the type and size of distillery / distilleries with which you want to partner, and the ultimate number of palenqueros when your project is running at its full potential.
  • Legal matters such as contracts, registrations and filings must be considered for not only the jurisdiction into which you want to import the mezcal, but also for Mexico. There is a relatively sophisticated regulatory multi-departmental administrative framework with which you must comply in order to export mezcal, and so a Mexican lawyer is suggested, better yet a Oaxacan with expertise in both intellectual property and spirits.

Brand name is of course important, but sometimes other factors play more important roles impacting a mezcal project’s success. Your brand name must be registered in Mexico even if you have no interest in the domestic market. So you should consider a name you think is available in the jurisdiction of your proposed market as well as in Mexico. Don’t spend an inordinate amount of effort and resources on brand name development until you have confirmed the name is not taken in Mexico. Some entrepreneurs actually wait until they have been to Oaxaca and decided upon a palenquero, to then select a name, or wait until in the region and somehow have been inspired to the point when a marketing concept, including name, leaps out.

The foregoing is an enumeration of a limited number of considerations to be pondered early on in the process of embarking upon a mezcal import project. The listing is far from exhaustive, and meant to merely alert those with an interest in getting into the mezcal business as to its complexity. Proceed with caution, and explore every detail meticulously, thereby maximizing the likelihood of success.

Insurance Companies Listings and Ratings Guide For Insurance Agents & Brokers

Here is the newest, revised version of the best insurance companies listings. These are compiled in a top 100 ratings guide format. The listings are in alphabetical order helping insurance agents & brokers locate an insurer. Find out how your opinion compares. How can you possibly rate an insurance company? I will mention briefly the various ways, show you the method I is used for this article, and why.

BY NUMBER OF AGENTS

This ratings guide listing method evaluates the insurer by the sheer number of insurance agents & brokers currently licensed and under contract. with carrier. I feel this evaluation to be worthless for a multitude of reasons. First of all there are a number of career health and life insurance agencies that have thousands of representatives. However, of these,up to 80% of the total agents are relatively new in attempting to establish credibility in the industry. Four years down the line only 6% of many an insurance company agency force will maintain enough production to stay career representatives.

Moreover, my findings uncover inaccuracy of this method due to licensing renewal process state insurance departments impose on the insurer. Most state departments of insurance send the renewal report forms on a yearly basis. There is a fee to be paid by each ins agent renewed. What makes it difficult is the variation of different paperwork procedures by individual states for removing non-active ins reps. The paperwork consists of costly, time consuming forms and procedures for the insurance company to make any changes. Renewing all the sales representatives is often cheaper, and thus the route the insurer frequently takes. This also gives the insurance company bragging rights to how many sales people write for them.

Personally I was shown in state insurance department records as licensed for 11 years after I wrote my last case.

INSURANCE CO FINANCIAL RANKING LISTINGS

There are four or five top independent firms that employ this insurer rating of a company based on a multitude of financial factors. A lot has to do with projecting the financial stability of the insurer. This is accomplished by closely dissecting past and present financial history. It covers how the insurer investments perform, and the rate of return. An insurance evaluation also takes in consideration the amount of cash on hand, and how much exists in reserves to pay present and future claims.

There is a consensus among life insurance association members into believing that the highest rated insurers are the best of the bunch. Yet association members make up less than 12% of the total producer base. The other insurance agents and brokers, (the majority), do not agree that these are always the best ones to use for their client’s needs. Logic tells you that a newer quality insurer does not have past history to start out top ranked. In my situation, clients bought what I presented them. Nearly half the time it was NOT the highest rated company by the rating firms. I however sold the client what their emotional needs demanded. Many past insurance companies with rankings in the best 100 later financially failed, and still frequently do in today’s world.

BY RANKING OF PREMIUMS COLLECTED

This is a very common type of insurance company listing & ranking to produce. Insurance companies are rated by total number of premiums they collected that year. It seems rather unfair to mix annuity premiums in with all dollars collected. Producers know it is easier to sell a $20,000 annuity than a $20,000 premium term insurance policy. The other fault I find with using total premiums collected is with who actually contributed a chunk of the premiums collected. With some companies an enormous amount of these premiums were not collected by the average sales person. A lot of institutional buyers directly bought hundreds of thousands of dollars of annuity premiums.

BY RATINGS IMPORTANT TO HEALTH & LIFE SELLERS

This is my way. As fair and balanced from an sales representative perspective as feasible. Premiums are collected from the 1,500,000 agents, trying to make a living by selling insurance policies in this industry. Often these sales are done one by one. Plus, of this 450,00 independent brokers, semi-independent agents and some career reps write, depending on which company, 50% to 100% of that insurance co business.

This rankings method is imposed because I find the insurance companies listing is intended to be a beneficial directory. One that independent brokers, semi-independent representatives, along with some career reps can turn to. This is a guide directory to other insurers that you may consider writing production for.

The insurance companies listing and ratings guide to the top 100 is purposely placed in alphabetical order instead of by premium or financial data. You may not agree completely with the listing, because we have left in some companies with a strong percentage of business sold in annuities, and investment products.

In the eyes of a typical health and life broker, this guide is of health and life insurance companies is about as accurate as possible.

1. Aetna 2. AIG Life Insurance Company** 3. Allianz Life Insurance Company of North America 4. American Family Life Assurance Co of Columbus 5. American Fidelity Assurance Company 6. American General Life and Accident INS Co** 7. American General Life Insurance Co** 8. American Income 9. American Memorial 10. American National Life 11. Americo Financial Life And Annuity 12. Anthem Blue Cross 13 Aurora National Assurance 14 Aviva Life and Annuity Company 15. AXA Equitable 16.Bankers Life and Casualty Company 17. Banner 18. Beneficial Life 19. C.M. Life Ins 20. Colonial Life & Accident 21. Columbus Life 22. Conseco Life 23. Farmers New World 24. First-Penn Pacific 25.Forethought 26. General American 27. Genworth 28. Gerber 29. Great American 30. Great-West Life & Annuity 31. Guardian 32. Hartford Life and Accident Ins Company 33. Hartford 34. Homesteaders 35. Indianapolis Life 36. ING 37. Jackson National 38. John Hancock 39. John Hancock Life Insurance Company USA 40.. Kansas City Life 41.. Lafayette 42.. Liberty Life Assurance Co of Boston 43.. Liberty National 44.. Life Ins Company of North America 45. Life Ins Company of the Southwest 46. Life Investors Ins Co of America 47. Lincoln Benefit 48. Lincoln Heritage 49. Lincoln National 50. Massachusetts Mutual 51. Metropolitan 52. Midland National 53. Minnesota Life 54. Monumental Life 55. MONY – America 56. MONY – New York 57. National Guardian 58. National Life 59. New England Life 60. New York Life Ins and Annuity Corporation 61. New York Life 62. North American Co for Life & Health Ins. 63. Northwestern Mutual 64. Ohio National Life 65. OM Financial 66. Pacific Life 67. Penn Mutual 68. Phoenix Life Ins 69. Primerica 70. Principal 71. Protective 72. Provident Life and Accident 73. Pruco 74. Prudential – America 75. Reassure America 76. Reliance Standard 77. ReliaStar 78. Riversource 79. Security Life of Denver y 80. Standard 81. Stonebridge 82. Sun Life and Health 83. Sunset 84. Surety 85. Symetra 86. Transamerica 87. Transamerica Occidental 88. Trustmark 89. U.S. Financial 90. Union Central 91. Union Security 92. United Healthcare 93. United Ins Company of America 94. United Investors 95. United of Omaha 96. United States Life 97. Unum 98. West Coast 99. Western and Southern Life 100. Western Reserve Life Assurance Co of Ohio Note: Sagicor Life, Foresters, and Illinois Mutual should appear on the bottom 3 listings, replacing the companies listed above as #6, 2, and 7.

**AIG Life Insurance Company, American General Life, American General Life and Casualty Comments

This group of companies USED to be one the highest premium generating, and highest ranked insurance companies in the United States. Still, after two massive Federal Bailouts, the future is uncertain. Therefore, AIG Life is no longer deserving of being on this top 100 list guide.

GUIDE TO QUESTIONABLE LIFE INSURANCE COMPANY LISTINGS

The following insurance companies listings often could be included in different types of some top 100 Life ins company rankings IF you were evaluating premiums written. Sometimes the premiums consist of considerable amounts of annuity premiums. Also counted in would be insurers where a large portion of sales do not come from representatives and sales people. Instead it is written by security stock brokerage firms, and independent broker-dealers of variable investment contracts not governed by insurance departments. In other cases, products may be directly strictly toward teachers, the military, or credit unions. In a couple cases, there are companies with pending litigation. A representation of this mix of insurers is listed below:

1. Cuna Mutual 2. Genworth Life and Annuity 3. Harford Life and Annuity y 4. John Hancock Variable Life 5. Mayflower National 6. Metlife – Connecticut 7. Metlife Investors USA 8. MML Bay State 9. Nationwide 10. Nationwide Life & Annuity 11. NYLife of AZ 12. PHL Variable 13. Sun Life Assurance Co of Canada 14. Teachers Ins and Annuity Assoc of America 15. USAA 16. Shenandoah — financial difficulties

There is a grand total of over 600 Licensed Life/Health Companies “active” in every state of the United States. However, some are not currently writing new business. In addition, there are many active in only one or a few states, so you will find them missing from the top insurance company listings. Most states have a true actual listing count of 220 to 330 life and health home offices currently accepting new cases from licensed agents & brokers.

Advisor’s predition. If I choose from the provider listings above, Foresters would be my top pick as the next rising star. Its innovative niche products are starting to create a high demand. Also watch Genworth, its stock value has zoomed and the company is very adaptive to market opportunities.

Exit mobile version