It is not true. Allstate doesn't reduce their costs this way. They would still have to pay that vendor. An operating expense is an operating expense regardless if they pay you or someone else does.
6 replies (most recent on top)
You must not work in claims. I was hired from a vendor for Allstate before coming here. Allstate has always used vendors to reduce cost.
What’s the work around for the fact that in order file for re-insurance over half of the work must be performed by staff vs third party?
They simply cannot farm out the entire claims product line for this very reason.
Someone needs rudimentary econ knowledge on exchange rates of foreign currencies, labor laws or lack thereof, and non living wages. Aka capital flight.
Of course they are outsourcing overseas and with telecommuting the C-suite has to salivating.
#d-mbpost
did you not pay attention in school? hiring a vendor has benefits but also tradeoffs. no worry about unemployment. no need to contribute to retirement plans , health insurance, work comp, payroll taxes.
If you end up working for the vendor and they let you go, you won’t have the time in to get any severance. 🤷♀️
It's very true and will very much be happening. Vendor employees in Mexico and Phillipeans get paid $4-5 an hour on average. This is what Allstate will be paying a head. Even if they pay additional for the vendor service itself they are still saving many dollars a head. And the employees that get moved to the vendor to lower the announced layoff headcount and to avoid paying severance will themselves be let go by the vendor due to their higher wages. And the vendor does not pay out severance.