Business insurance customers can take steps to reduce their property costs by making use of outsourcing and shared services, an expert has suggested.

Tanya Bagchi, senior manager at professional services provider KPMG, told a recent GVA Grimley/Confederation of British Industry seminar that the current economic conditions are making business insurance holders look for ways to cut costs.

Ms Bagchi claimed that one way business insurance customers can do this is to outsource back-office operations to overseas providers, which is often a cheaper alternative.

In addition, using shared services on their property could help them to achieve cost savings.

However, she pointed out that management must explain to the staff the benefits which will arise from the changes, in order to avoid becoming demotivated.

Ms Bagchi explained: "By doing that you will reduce the chance of a performance dip that an organisation does tend to go through at these times."

Recently, Howard Cooke, a director in the corporate consulting team at GVA Grimley, claimed that business insurance holders can reduce costs by carefully considering how to make best use of their space.

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