Scalepoint Technologies

Scalepoint offers Claims Management solutions with access to products/services/data and direct interaction with networks within movables, building, auto repairs, and delivery partners. Scalepoint helps insurance companies achieve higher customer loyalty, lower compensations and lower costs by optimizing the compensation processes. Scalepoint provides service to more than 25 customers in Europe.

Scalepoint Technologies, a provider of Claims Management solutions to the insurance industry, has made a nearshore agreement with Ciklum. Under this partnership Ciklum will set-up Scalepoint own team of IT specialists that will assist in developing the next version of their Claims Management system.

For historical reasons Ukraine is one of the places in the World where you find the highest concentration of highly educated and specialised IT experts.


"When Scalepoint decided to outsource part of our application development to offshore companies it was not just for financial reasons. Yes, it is still cheaper to have a development team in Ukraine than in Denmark, but the price is not the only parameter. What is important is that in Ukraine we have found qualified developers who have the knowledge and experience with these types of projects. Ciklum's developers have the right methodologies and the right approach to a project such as this," says Brian Madsen, Head of Project Office at Scalepoint Technologies.

Western culture and business practices in Ukraine
For more than two years the multinational company has already had an offshore department in the Philippines that still works with the development of Scalepoint's existing IT platform. The partnership with Ciklum in Ukraine is new, but also different from the other offshore project. In this project it is a great advantage that Ukraine geographically as well as culturally is close to Denmark and to Europe; this makes it easy to work together.

"In Ukraine they work at basically the same hours as we do. They are very Western-oriented and close to the Western culture. This makes them capable of understanding the needs and demands that a Danish end user has to an IT system. Furthermore, they have incredibly well-educated employees who are very much used to working with Western methodologies when working with IT development."

They have the right process management tool
Scalepoint team in Ukraine consists of 7 employees and the development is based on Scrum, which ensures that the team evaluates and plans the next steps each day, based on a number of "sprints". Hence, not only the team itself, but also the Danish IT architects and developers can follow and manage the project on a day-to-day basis.

"We started out by having part of the team in Denmark in order to go through the project and organize things together with them. After that the project manager has visited Denmark for a certain period of time in order to follow up on goals, tests and evaluations. Besides that, we talk to each other and also meet up in person, on the phone and online. Of course it would be easier if the team sat in the next room - but that's impossible," states Brian Madsen.

They've done it before
"Scalepoint Technologies investigated the market thoroughly before choosing Ciklum as their new outsourcing partner. During the evaluation of various offshore companies a number of parameters and demands had to be met. Ciklum showed a great experience with nearshore solutions and made an offer that seemed to be a good value for money. "At the same time this gives us the opportunity to use our existing department in the Philippines even better, as the development process will be divided between the two departments."

With a portfolio that includes the largest insurance companies in the Nordic market, Scalepoint needs to improve the tools that they offer to their customers so they can continue to stay in the top of the market while still being in tune with the technological development.

Solutions that makes it easy being a client
Each day Scalepoint provides service to more than 26 insurance companies in 13 countries with intelligent tools that provide quick and efficient access to finding the information that insurance companies need in their daily contact with customers. For instance, if the insurance is covering the repair of a customer's damaged car, the insurance agent can easily find the nearest shop through Scalepoint's systems as well as prices and other relevant information. This reduces the insurance companies' time spent, and consequently costs, each time a case is to be dealt with.

Scalepoint initiated their relationship with Ciklum in November 2008 and the team started in Ukraine a few months after. Besides being present in Eastern Europe, Ciklum also offers offshore solutions in Pakistan.

"The tools that we offer to our customers are unique, and they have to keep being unique. That is why we keep developing and why we have upgraded with a nearshore solution in Ukraine. Whether it pays off is too early to tell, but we expect it to become a success story," argues Brian Madsen, Head of Project Office at Scalepoint Technologies.

Reference date: January 2010