Avoid These Pitfalls in PAS Modernization Project Resourcing

PAS Modernization Staffing for Carriers with Limited Resources 

As we pointed out in an earlier edition of this newsletter the internal team functions and roles that you will need to fill to ensure the success of your PAS modernization project largely mirror the roles required on the vendor/partner team.  

This parallelism is not a duplication of effort or skillsets, but a reflection of the fact that the combined project team is continually translating ideas, goals and technical information from the carrier environment to the partner world, and back again. And decisions will need to be made along the way that affect both parties. So, for example, a vendor systems architect will need to know details about the many internal and external systems that the new PAS will have to communicate with—and that information comes from their internal equivalent, who would have the greatest expertise and experience with the carrier’s ecosystem. 

In any PAS modernization project, no matter the size of the carrier, the project still has to be managed, requirements need to be created with the help of legacy system SMEs and configuration, integrations and testing must still be addressed. 

This means success is dependent on the insurer being able to fill all of those necessary internal roles on the project team. So, even small carriers with relatively few dedicated IT staff, need to find ways to ensure that the roles of solution architect, business analyst, internal project manager and quality assurance specialist are filled.  

For a smaller carrier with fewer staff, like a fraternal insurer for instance, this is challenging but can be accomplished. At Equisoft for instance, we have completed many large modernization projects with these types of organizations with great success.  

Techniques for Staffing Large Projects When You Have a Limited Amount of Staff

Resourcing Process 

Insurance carriers planning for PAS modernization projects with limited internal staff and resources often employ a hybrid approach to staffing. And that usually means smaller insurers will need to work through three important resourcing steps:   

🔺Identify all of the functions that will need to be managed in order to successfully complete the PAS modernization project 

🔺Identify available internal resources and match them against the required functions 

🔺Identify available external resources who can fill in functional gaps 

The Most Important Functions to Be Staffed Internally

The core internal team will often focus on the most critical areas that the carrier can control and in which the staff have the most expertise. These can include:  

🔺Defining business requirements 

🔺Vendor management 

🔺Project management 

🔺User acceptance testing and sign-off 

Focusing existing staff on those key aspects of project delivery will ensure that you start the project on the right track by carefully identifying the most important requirements you have for the completed solution. The better and more detailed requirements you provide, the better the vendor will be able to do in designing the right architecture and defining the configurations necessary to deliver your needs.  

During the project you will need an internal resource who acts as project manager, ensuring the efforts stay on time and on budget, while addressing quality issues and making decisions on priorities as circumstances evolve.  

This person may also be the one to oversee the vendor relationship in general, making sure that proper resources are made available on their side and that agreed upon terms are being met.  

Finally, a carrier resource will need to test and validate that each completed element of the modernization solution meets the desired goals and is functioning properly before final sign off on project completion.  

What to Outsource 

To avoid having to hire new full-time employees to fill resource gaps in the project, it’s a good practice to work with a vendor who is able to provide resources that will fill your needs through a managed service model. In this arrangement the vendor takes responsibility for processes or functions that the carrier doesn’t have resources for or expertise in.  

In the case of modernization projects, carriers may leverage system integrator partners for: 

🔺Implementation expertise 

🔺Configuration development 

🔺Testing  

🔺Data migration 

Potential Hybrid Resourcing Challenges

There can be downsides to these types of arrangements if carriers don’t do a good job of vetting technical partners. Lack of specific expertise or knowledge of the history of the source systems can create challenges. Availability of hybrid resources can also become an issue if the planning, scheduling and project management is not rigorous before the project begins. 

Although there are potential issues that need to be addressed before a projects starts, many companies have proven that PAS modernization and even larger digital transformations can be successfully completed using a hybrid resourcing model, even when the carrier faces very tight resource constraints. And the upside to running lean, with a small IT staff, is that the carrier and overall project team remain very agile, with fewer layers of approval to navigate as the project progresses. 

Wrap Up 

In this hybrid resourcing model careful vendor selection, clear contracts, and strong governance are crucial for successful execution of this blended staffing strategy. When done correctly, this blend of internal and external resources allows carriers to access specialized skills without the long-term commitment of hiring full-time employees, while maintaining internal control over key strategic aspects of the project.