#Outsourcing

[mostlysignssomeportents]

Cigna’s nopeinator

I'm touring my new, nationally bestselling novel The Bezzle! Catch me THURSDAY (May 2) in WINNIPEG, then Calgary (May 3), Vancouver (May 4), Tartu, Estonia, and beyond!

Cigna – like all private health insurers – has two contradictory imperatives:

To keep its customers healthy; and

To make as much money for its shareholders as is possible.

Now, there's a hypothetical way to resolve these contradictions, a story much beloved by advocates of America's wasteful, cruel, inefficient private health industry: "If health is a "market," then a health insurer that fails to keep its customers healthy will lose those customers and thus make less for its shareholders." In this thought-experiment, Cigna will "find an equilibrium" between spending money to keep its customers healthy, thus retaining their business, and also "seeking efficiencies" to create a standard of care that's cost-effective.

But health care isn't a market. Most of us get our health-care through our employers, who offer small handful of options that nevertheless manage to be so complex in their particulars that they're impossible to directly compare, and somehow all end up not covering the things we need them for. Oh, and you can only change insurers once or twice per year, and doing so incurs savage switching costs, like losing access to your family doctor and specialists providers.

Cigna – like other health insurers – is "too big to care." It doesn't have to worry about losing your business, so it grows progressively less interested in even pretending to keep you healthy.

The most important way for an insurer to protect its profits at the expense of your health is to deny care that your doctor believes you need. Cigna has transformed itself into a care-denying assembly line.

Dr Debby Day is a Cigna whistleblower. Dr Day was a Cigna medical director, charged with reviewing denied cases, a job she held for 20 years. In 2022, she was forced out by Cigna. Writing for Propublica and The Capitol Forum, Patrick Rucker and David Armstrong tell her story, revealing the true "equilibrium" that Cigna has found:

https://www.propublica.org/article/cigna-medical-director-doctor-patient-preapproval-denials-insurance

Dr Day took her job seriously. Early in her career, she discovered a pattern of claims from doctors for an expensive therapy called intravenous immunoglobulin in cases where this made no medical sense. Dr Day reviewed the scientific literature on IVIG and developed a Cigna-wide policy for its use that saved the company millions of dollars.

This is how it's supposed to work: insurers (whether private or public) should permit all the medically necessary interventions and deny interventions that aren't supported by evidence, and they should determine the difference through internal reviewers who are treated as independent experts.

But as the competitive landscape for US healthcare dwindled – and as Cigna bought out more parts of its supply chain and merged with more of its major rivals – the company became uniquely focused on denying claims, irrespective of their medical merit.

In Dr Day's story, the turning point came when Cinga outsourced pre-approvals to registered nurses in the Philippines. Legally, a nurse can approve a claim, but only an MD can deny a claim. So Dr Day and her colleagues would have to sign off when a nurse deemed a procedure, therapy or drug to be medically unnecessary.

This is a complex determination to make, even under ideal circumstances, but Cigna's Filipino outsource partners were far from ideal. Dr Day found that nurses were "sloppy" – they'd confuse a mother with her newborn baby and deny care on that grounds, or confuse an injured hip with an injured neck and deny permission for an ultrasound. Dr Day reviewed a claim for a test that was denied because STI tests weren't "medically necessary" – but the patient's doctor had applied for a test to diagnose a toenail fungus, not an STI.

Even if the nurses' evaluations had been careful, Dr Day wanted to conduct her own, thorough investigation before overriding another doctor's judgment about the care that doctor's patient warranted. When a nurse recommended denying care "for a cancer patient or a sick baby," Dr Day would research medical guidelines, read studies and review the patient's record before signing off on the recommendation.

This was how the claims denial process is said to work, but it's not how it was supposed to work. Dr Day was markedly slower than her peers, who would "click and close" claims by pasting the nurses' own rationale for denying the claim into the relevant form, acting as a rubber-stamp rather than a skilled reviewer.

Dr Day knew she was slower than her peers. Cigna made sure of that, producing a "productivity dashboard" that scored doctors based on "handle time," which Cigna describes as the average time its doctors spend on different kinds of claims. But Dr Day and other Cigna sources say that this was a maximum, not an average – a way of disciplining doctors.

These were not long times. If a doctor asked Cigna not to discharge their patient from hospital care and a nurse denied that claim, the doctor reviewing that claim was supposed to spend not more than 4.5 minutes on their review. Other timelines were even more aggressive: many denials of prescription drugs were meant to be resolved in fewer than two minutes.

Cigna told Propublica and The Capitol Forum that its productivity scores weren't based on a simple calculation about whether its MD reviewers were hitting these brutal processing time targets, describing the scores as a proprietary mix of factors that reflected a nuanced view of care. But when Propublica and The Capitol Forum created a crude algorithm to generate scores by comparing a doctor's performance relative to the company's targets, they found the results fit very neatly into the actual scores that Cigna assigned to its docs:

The newsrooms’ formula accurately reproduced the scores of 87% of the Cigna doctors listed; the scores of all but one of the rest fell within 1 to 2 percentage points of the number generated by this formula. When asked about this formula, Cigna said it may be inaccurate but didn’t elaborate.

As Dr Day slipped lower on the productivity chart, her bosses pressured her bring her score up (Day recorded her phone calls and saved her emails, and the reporters verified them). Among other things, Dr Day's boss made it clear that her annual bonus and stock options were contingent on her making quota.

Cigna denies all of this. They smeared Dr Day as a "disgruntled former employee" (as though that has any bearing on the truthfulness of her account), and declined to explain the discrepancies between Dr Day's accusations and Cigna's bland denials.

This isn't new for Cigna. Last year, Propublica and Capitol Forum revealed the existence of an algorithmic claims denial system that allowed its doctors to bulk-deny claims in as little as 1.2 seconds:

https://www.propublica.org/article/cigna-pxdx-medical-health-insurance-rejection-claims

Cigna insisted that this was a mischaracterization, saying the system existed to speed up the approval of claims, despite the first-hand accounts of Cigna's own doctors and the doctors whose care recommendations were blocked by the system. One Cigna doctor used this system to "review" and deny 60,000 claims in one month.

Beyond serving as an indictment of the US for-profit health industry, and of Cigna's business practices, this is also a cautionary tale about the idea that critical AI applications can be resolved with "humans in the loop."

AI pitchmen claim that even unreliable AI can be fixed by adding a "human in the loop" that reviews the AI's judgments:

https://pluralistic.net/2024/04/23/maximal-plausibility/#reverse-centaurs

In this world, the AI is an assistant to the human. For example, a radiologist might have an AI double-check their assessments of chest X-rays, and revisit those X-rays where the AI's assessment didn't match their own. This robot-assisted-human configuration is called a "centaur."

In reality, "human in the loop" is almost always a reverse-centaur. If the hospital buys an AI, fires half its radiologists and orders the remainder to review the AI's superhuman assessments of chest X-rays, that's not an AI assisted radiologist, that's a radiologist-assisted AI. Accuracy goes down, but so do costs. That's the bet that AI investors are making.

Many AI applications turn out not to even be "AI" – they're just low-waged workers in an overseas call-center pretending to be an algorithm (some Indian techies joke that AI stands for "absent Indians"). That was the case with Amazon's Grab and Go stores where, supposedly, AI-enabled cameras counted up all the things you put in your shopping basket and automatically billed you for them. In reality, the cameras were connected to Indian call-centers where low-waged workers made those assessments:

https://pluralistic.net/2024/01/29/pay-no-attention/#to-the-little-man-behind-the-curtain

This Potemkin AI represents an intermediate step between outsourcing and AI. Over the past three decades, the growth of cheap telecommunications and logistics systems let corporations outsource customer service to low-waged offshore workers. The corporations used the excuse that these subcontractors were far from the firm and its customers to deny them any agency, giving them rigid scripts and procedures to follow.

This was a very usefully dysfunctional system. As a customer with a complaint, you would call the customer service line, wait for a long time on hold, spend an interminable time working through a proscribed claims-handling process with a rep who was prohibited from diverging from that process. That process nearly always ended with you being told that nothing could be done.

At that point, a large number of customers would have given up on getting a refund, exchange or credit. The money paid out to the few customers who were stubborn or angry enough to karen their way to a supervisor and get something out of the company amounted to pennies, relative to the sums the company reaped by ripping off the rest.

The Amazon Grab and Go workers were humans in robot suits, but these customer service reps were robots in human suits. The software told them what to say, and they said it, and all they were allowed to say was what appeared on their screens. They were reverse centaurs, serving as the human faces of the intransigent robots programmed by monopolists that were too big to care.

AI is the final stage of this progression: robots without the human suits. The AI turns its "human in the loop" into a "moral crumple zone," which Madeleine Clare Elish describes as "a component that bears the brunt of the moral and legal responsibilities when the overall system malfunctions":

https://estsjournal.org/index.php/ests/article/view/260

The Filipino nurses in the Cigna system are an avoidable expense. As Cigna's own dabbling in algorithmic claim-denial shows, they can be jettisoned in favor of a system that uses productivity dashboards and other bossware to push doctors to robosign hundreds or thousands of denials per day, on the pretense that these denials were "reviewed" by a licensed physician.

If you'd like an essay-formatted version of this post to read or share, here's a link to it on pluralistic.net, my surveillance-free, ad-free, tracker-free blog:

https://pluralistic.net/2024/04/29/what-part-of-no/#dont-you-understand

[errs-other-other-blog-again]

*Song that plays when you encounter a meowmeowmeowmeow*

( @theenderwalker 's little guy dude friend )

[prozrel]

Trace

[teenagerebellion]

i've been so busy lately and im looking forward to actually writing... (psst if anyone who's in a discord server with me wants to run sprints...) rb for more votes etc etc

[ashik3]

The Complete Guide to Outsourcing in 2025

What is Outsourcing and Why Does It Matter More Than Ever?

Outsourcing has become the backbone of modern business operations, transforming from a simple cost-cutting measure into a strategic necessity. But what exactly is outsourcing? At its core, outsourcing involves delegating specific business functions or processes to external service providers rather than handling them internally.

In today's hyper-competitive business landscape, outsourcing isn't just about saving money anymore. It's about survival, growth, and staying ahead of the curve. Companies that embrace smart outsourcing strategies are positioning themselves to thrive in an increasingly complex global marketplace.

Think of outsourcing as having a team of specialists at your fingertips without the overhead costs of hiring full-time employees. It's like having access to a Swiss Army knife of business solutions – you get the right tool for the right job, exactly when you need it.

The Evolution of Outsourcing: From Cost-Cutting to Strategic Partnership

The outsourcing industry has undergone a remarkable transformation over the past decade. Gone are the days when businesses outsourced solely to reduce labor costs. Today's outsourcing relationships are built on strategic partnerships that drive innovation, enhance capabilities, and create competitive advantages.

This evolution has been accelerated by technological advances, changing workforce expectations, and the need for businesses to remain agile in uncertain times. Companies are no longer just looking for cheaper alternatives – they're seeking partners who can bring expertise, innovation, and strategic value to their operations.

The shift from transactional relationships to strategic partnerships has redefined how businesses approach outsourcing. It's no longer about finding the lowest bidder; it's about finding the right partner who can contribute to your long-term success.

Types of Outsourcing Every Business Should Know

Business Process Outsourcing (BPO)

Business Process Outsourcing represents the most common form of outsourcing, involving the delegation of entire business processes to external providers. This includes customer service, human resources, accounting, and administrative functions. BPO allows companies to focus on their core competencies while ensuring that essential but non-core processes are handled efficiently by specialists.

The beauty of BPO lies in its versatility. Whether you're a startup looking to establish professional customer support or an enterprise seeking to streamline your HR operations, BPO can be tailored to meet your specific needs. It's like having a dedicated team working behind the scenes to keep your business running smoothly.

Information Technology Outsourcing (ITO)

IT outsourcing has become indispensable in our digital-first world. This involves delegating technology-related functions such as software development, system maintenance, cybersecurity, and technical support to specialized providers. With the rapid pace of technological change, many businesses find it more efficient to partner with IT experts rather than trying to keep up internally.

ITO offers access to cutting-edge technologies and expertise that might otherwise be prohibitively expensive or difficult to maintain in-house. It's particularly valuable for businesses that need to stay current with technology trends without investing heavily in internal IT infrastructure.

Knowledge Process Outsourcing (KPO)

Knowledge Process Outsourcing represents the higher end of the outsourcing spectrum, involving complex, knowledge-intensive processes that require specialized expertise. This includes research and development, financial analysis, legal services, and market research. KPO providers typically have advanced degrees and specialized knowledge in their respective fields.

What sets KPO apart is the level of intellectual input required. These aren't routine tasks that can be easily standardized – they require critical thinking, analysis, and domain expertise. It's like having access to a team of consultants and specialists without the consultant price tag.

Manufacturing Outsourcing

Manufacturing outsourcing involves delegating production processes to external manufacturers, often in countries with lower labor costs or specialized manufacturing capabilities. This type of outsourcing has been a cornerstone of global trade for decades and continues to evolve with changing economic conditions and technological advances.

Modern manufacturing outsourcing goes beyond simple cost reduction. Companies are increasingly looking for manufacturing partners who can provide innovation, quality improvements, and faster time-to-market. It's about finding the right balance between cost, quality, and capability.

Top Benefits of Outsourcing in 2025

Cost Reduction and Financial Flexibility

The financial benefits of outsourcing extend far beyond simple labor cost savings. By outsourcing non-core functions, businesses can convert fixed costs into variable costs, providing greater financial flexibility. This is particularly valuable in uncertain economic times when businesses need to maintain the ability to scale up or down quickly.

Outsourcing also eliminates the need for significant upfront investments in infrastructure, technology, and training. Instead of spending large amounts on setting up internal capabilities, businesses can access established expertise and infrastructure through their outsourcing partners. It's like renting a fully equipped office instead of buying and furnishing your own.

Access to Global Talent Pool

One of the most compelling advantages of outsourcing is access to a global talent pool. This is particularly valuable in today's tight labor market, where finding skilled professionals can be challenging and expensive. Outsourcing allows businesses to tap into expertise and skills that might not be available locally or might be prohibitively expensive to hire full-time.

This global access to talent also brings diversity of thought and experience to your business operations. Different perspectives and approaches can lead to innovative solutions and improved processes. It's like having a diverse team of experts working on your projects, each bringing their unique insights and experiences.

Enhanced Focus on Core Business Activities

By delegating non-core functions to outsourcing partners, businesses can redirect their internal resources and attention to activities that directly contribute to their competitive advantage. This enhanced focus often leads to improved performance in core areas and faster achievement of strategic objectives.

Think of it as decluttering your business operations. When you remove the distractions and delegate the routine tasks, you create space for innovation, strategic thinking, and activities that truly drive your business forward.

Scalability and Business Agility

Outsourcing provides unmatched scalability and agility. Whether you need to quickly scale up operations to meet increased demand or scale down during slower periods, outsourcing partners can adjust their services accordingly. This flexibility is crucial in today's dynamic business environment where change is the only constant.

This scalability extends beyond just capacity – it also includes capabilities. Need a new skill set for a specific project? Your outsourcing partner can quickly bring in the right expertise. It's like having an elastic workforce that can stretch and contract based on your needs.

Common Outsourcing Challenges and How to Overcome Them

Communication Barriers and Cultural Differences

Communication challenges remain one of the most significant obstacles in outsourcing relationships. Language barriers, time zone differences, and cultural misunderstandings can lead to project delays, quality issues, and frustration on both sides. However, these challenges are not insurmountable.

The key to overcoming communication barriers lies in establishing clear communication protocols from the start. This includes defining communication channels, setting regular meeting schedules that work across time zones, and creating detailed documentation standards. It's also important to invest time in understanding cultural differences and building relationships with your outsourcing team.

Quality Control Issues

Maintaining quality standards when work is performed by external providers can be challenging, especially when direct oversight is limited. Quality issues can arise from misunderstandings about requirements, different quality standards, or lack of proper oversight mechanisms.

Successful quality control in outsourcing requires establishing clear quality standards, implementing regular review processes, and creating feedback mechanisms. It's like setting up a quality assurance system that ensures consistency regardless of where the work is performed.

Data Security and Privacy Concerns

In an era of increasing cyber threats and strict data protection regulations, ensuring data security in outsourcing relationships is paramount. Businesses must carefully evaluate their outsourcing partners' security measures and ensure compliance with relevant regulations.

Addressing security concerns requires due diligence in partner selection, comprehensive security agreements, and ongoing monitoring of security practices. It's about creating multiple layers of protection to safeguard sensitive information throughout the outsourcing relationship.

Best Practices for Successful Outsourcing

Choosing the Right Outsourcing Partner

Selecting the right outsourcing partner is perhaps the most critical decision in your outsourcing journey. This goes beyond comparing costs – you need to evaluate expertise, cultural fit, communication capabilities, and long-term viability. The cheapest option is rarely the best option when it comes to outsourcing.

A thorough partner evaluation should include reviewing their track record, speaking with current and former clients, assessing their financial stability, and evaluating their ability to scale with your business. It's like choosing a business partner – you want someone who will contribute to your success, not just complete tasks.

Setting Clear Expectations and SLAs

Clear expectations and well-defined Service Level Agreements (SLAs) form the foundation of successful outsourcing relationships. These documents should specify deliverables, quality standards, timelines, communication requirements, and performance metrics. Ambiguity is the enemy of successful outsourcing.

Your SLAs should be specific, measurable, and realistic. They should also include provisions for handling changes, disputes, and performance issues. Think of SLAs as the rulebook for your outsourcing relationship – they keep everyone on the same page and provide a framework for addressing issues when they arise.

Building Strong Communication Channels

Effective communication is the lifeblood of successful outsourcing relationships. This means establishing regular communication rhythms, using appropriate communication tools, and ensuring that key stakeholders on both sides are kept informed. Communication shouldn't be an afterthought – it should be a planned and structured part of your outsourcing strategy.

Strong communication channels also include creating escalation paths for issues and ensuring that cultural and language barriers don't impede understanding. It's about creating an environment where open, honest communication is encouraged and facilitated.

Emerging Trends in Outsourcing for 2025

AI and Automation Integration

Artificial Intelligence and automation are revolutionizing the outsourcing industry. Outsourcing providers are increasingly integrating AI tools and automation technologies to improve efficiency, reduce errors, and provide better value to their clients. This trend is making outsourcing even more attractive as providers can deliver higher quality services at competitive prices.

The integration of AI doesn't mean job displacement – it means job enhancement. Human workers are being freed from routine, repetitive tasks to focus on higher-value activities that require creativity, critical thinking, and emotional intelligence. It's like having a super-powered team where humans and machines work together to achieve better results.

Nearshoring vs. Offshoring

The trend toward nearshoring – outsourcing to nearby countries rather than distant ones – is gaining momentum. This approach offers many of the cost benefits of traditional offshoring while reducing some of the challenges related to time zones, cultural differences, and communication barriers.

Nearshoring provides a middle ground between domestic outsourcing and traditional offshoring. It's particularly attractive for businesses that need close collaboration, frequent communication, or have concerns about data security and intellectual property protection.

Sustainability-Focused Outsourcing

Environmental and social sustainability are becoming increasingly important factors in outsourcing decisions. Businesses are looking for outsourcing partners who share their commitment to sustainable practices and social responsibility. This includes everything from environmental policies to fair labor practices.

Sustainability-focused outsourcing isn't just about doing good – it's also about risk management and brand protection. Consumers and stakeholders are increasingly holding businesses accountable for the practices of their partners and suppliers.

Industry-Specific Outsourcing Strategies

Healthcare Outsourcing

The healthcare industry has unique outsourcing needs and challenges. Medical billing, coding, transcription, and telemedicine support are commonly outsourced functions. However, healthcare outsourcing must navigate strict regulatory requirements, patient privacy concerns, and the critical nature of healthcare services.

Successful healthcare outsourcing requires partners who understand healthcare regulations, have appropriate certifications, and can maintain the highest standards of accuracy and confidentiality. It's about finding partners who can handle the complexity and responsibility that comes with healthcare services.

Financial Services Outsourcing

Financial services outsourcing covers a wide range of functions, from basic data entry and processing to complex financial analysis and risk management. The financial services industry has been an early adopter of outsourcing, but it also faces unique challenges related to regulatory compliance and security.

Financial services outsourcing requires partners who understand the regulatory environment, have robust security measures, and can maintain the accuracy and timeliness that financial services demand. Trust and reliability are paramount in this industry.

E-commerce and Retail Outsourcing

E-commerce and retail businesses often outsource customer service, order fulfillment, inventory management, and digital marketing functions. The seasonal nature of retail and the 24/7 demands of e-commerce make outsourcing particularly attractive for these industries.

E-commerce outsourcing partners need to understand the fast-paced nature of online retail, the importance of customer experience, and the need for scalability to handle peak seasons and promotional periods.

How to Create Your Outsourcing Strategy

Creating an effective outsourcing strategy starts with a thorough assessment of your current operations and identification of functions that are suitable for outsourcing. This involves analyzing each business process to determine its strategic importance, current performance, and potential for improvement through outsourcing.

Your outsourcing strategy should align with your overall business strategy and objectives. It's not about outsourcing everything you can – it's about outsourcing the right things in the right way to support your business goals. Consider factors such as cost, quality, risk, and strategic importance when making outsourcing decisions.

The strategy should also include a timeline for implementation, budget considerations, and success metrics. Remember that outsourcing is not a one-time decision – it's an ongoing process that requires regular review and adjustment.

Measuring Outsourcing Success: KPIs and Metrics

Measuring the success of your outsourcing initiatives requires establishing clear Key Performance Indicators (KPIs) and metrics from the beginning. These should cover various aspects of the outsourcing relationship, including cost savings, quality improvements, service levels, and customer satisfaction.

Financial metrics are important, but they shouldn't be the only measure of success. Quality metrics, such as error rates and customer satisfaction scores, provide insight into the value being delivered. Operational metrics, such as turnaround times and availability, measure the efficiency of the outsourcing arrangement.

Regular measurement and reporting create accountability and provide the information needed to make improvements. It's like having a dashboard that shows you how well your outsourcing relationships are performing and where adjustments might be needed.

The Future of Outsourcing: What to Expect Beyond 2025

The future of outsourcing will be shaped by continued technological advancement, changing workforce dynamics, and evolving business needs. We can expect to see more sophisticated integration of AI and automation, greater emphasis on outcomes rather than activities, and more collaborative partnerships between businesses and their outsourcing providers.

The line between internal and external resources will continue to blur as businesses adopt more flexible, hybrid approaches to workforce management. This will require new management skills, different contract structures, and more sophisticated performance measurement systems.

Businesses that want to succeed in this evolving landscape need to start preparing now by developing their outsourcing capabilities, building relationships with strategic partners, and creating the internal competencies needed to manage complex outsourcing relationships effectively.

Conclusion

Outsourcing in 2025 represents a strategic imperative rather than just a cost-saving tactic. The businesses that will thrive are those that approach outsourcing strategically, focus on building strong partnerships, and continuously adapt their outsourcing strategies to meet changing business needs.

Success in outsourcing requires careful planning, thorough partner selection, clear communication, and ongoing management. It's not a set-it-and-forget-it solution – it's an ongoing journey that requires attention, investment, and continuous improvement.

The future belongs to businesses that can effectively leverage global talent, technology, and expertise through strategic outsourcing relationships. By following the guidance in this comprehensive guide, you'll be well-positioned to harness the power of outsourcing to drive your business forward in 2025 and beyond.

Frequently Asked Questions (FAQs)

1. What types of business functions are best suited for outsourcing? Non-core functions that don't provide competitive advantage are typically best for outsourcing. This includes administrative tasks, customer support, IT services, accounting, and specialized projects requiring expertise not available internally. The key is identifying functions where external providers can deliver better value than internal resources.

2. How do I ensure data security when outsourcing sensitive business processes? Ensure data security by thoroughly vetting outsourcing partners' security measures, implementing comprehensive data protection agreements, establishing access controls, conducting regular security audits, and ensuring compliance with relevant data protection regulations. Choose partners with proven track records and appropriate security certifications.

3. What's the difference between nearshoring and offshoring, and which is better? Nearshoring involves outsourcing to nearby countries, while offshoring typically means outsourcing to distant countries with lower costs. Nearshoring offers better communication, similar time zones, and cultural alignment, while offshoring usually provides greater cost savings. The best choice depends on your specific needs, priorities, and risk tolerance.

4. How long does it typically take to see results from outsourcing? Results timeline varies depending on the complexity of outsourced functions and implementation approach. Simple processes might show results within 30-60 days, while complex transformations can take 6-12 months. Initial benefits often include cost savings, while efficiency improvements and quality enhancements typically develop over 3-6 months.

5. What are the most common mistakes businesses make when starting to outsource? Common mistakes include choosing providers based solely on cost, inadequate due diligence in partner selection, unclear expectations and contracts, poor communication planning, insufficient change management, and trying to outsource too much too quickly. Success requires careful planning, realistic expectations, and gradual implementation with proper oversight.

[a-typical]

“I have a foreboding of an America in my children's or grandchildren's time -- when the United States is a service and information economy; when nearly all the manufacturing industries have slipped away to other countries; when awesome technological powers are in the hands of a very few, and no one representing the public interest can even grasp the issues; when the people have lost the ability to set their own agendas or knowledgeably question those in authority; when, clutching our crystals and nervously consulting our horoscopes, our critical faculties in decline, unable to distinguish between what feels good and what's true, we slide, almost without noticing, back into superstition and darkness...

The dumbing down of American is most evident in the slow decay of substantive content in the enormously influential media, the 30 second sound bites (now down to 10 seconds or less), lowest common denominator programming, credulous presentations on pseudoscience and superstition, but especially a kind of celebration of ignorance” ― Carl Sagan, The Demon-Haunted World: Science as a Candle in the Dark

[transport-methodology-101]

The 1956 Powell Sport Wagon, also known as the Powell Pickup, was a unique vehicle built by Powell Manufacturing in the 1950s using refurbished Plymouth sedan parts and holds a unique place in truck history. Each Powell Pickup is a one-of-a-kind creation with steel bodies, fiberglass fronts, and even oak bumpers in early models.

https://www.petersen.org/news/petersen-archive-powells-holy-grail-the-powell-sport-wagon Powell’s Holy Grail: The Powell Sport Wagon — Petersen Automotive Museum

[suntelglobal]

What Is a Desktop Appraisal and How Does It Work?

As technology continues to transform the real estate and mortgage industry, many traditional processes are being reimagined for efficiency and convenience. One such innovation is the desktop appraisal - a modern alternative to the conventional home appraisal method. For homeowners, buyers and lenders, understanding what a desktop appraisal is and how it works can offer clarity and potentially faster, cost-effective options for property valuation.

Understanding the Basics: What Is a Desktop Appraisal?

A desktop appraisal is a type of real estate valuation where the appraiser evaluates a property's value remotely - without ever setting foot on the premises. Instead of visiting the property in person, the appraiser relies on available digital data sources, such as:

Tax assessments

Multiple Listing Service (MLS) data

Public property records

Floor plans

Aerial or satellite imagery

Renovation permits and building records

By analyzing these records from their office, appraisers can generate a professional opinion of value. Desktop appraisals have become more prominent in recent years, especially during periods when in-person inspections are impractical or unnecessary, such as during the COVID-19 pandemic.

How Does a Desktop Appraisal Differ from Other Appraisal Types?

There are a few different types of appraisals in real estate and each serves a unique purpose:

Traditional Appraisals: The appraiser visits the property in person, inspects the interior and exterior and creates a comprehensive report based on direct observation and comparable sales.

Hybrid Appraisals: A third party (not the appraiser) collects on-site property data, including photos and measurements. The appraiser then reviews the collected data remotely and completes the appraisal.

Desktop Appraisals: The appraiser performs the entire valuation remotely, using only publicly available or third-party data. There is no physical inspection at all.

While a traditional appraisal is the gold standard for accuracy, desktop appraisals are gaining traction for being faster and more scalable, especially in low-risk or high-volume scenarios.

When Are Desktop Appraisals Used?

Desktop appraisals aren’t suitable for every transaction. However, they are an excellent option under the right circumstances. Common uses include:

Mortgage pre-approvals or purchase transactions

Home equity loans or home equity lines of credit (HELOCs)

Portfolio evaluations for banks and investors

Tax appeal support

Insurance valuation purposes

Market analysis for sellers determining listing prices

According to Fannie Mae guidelines, desktop appraisals are typically only allowed for purchase transactions and may come with property-type and loan-to-value (LTV) restrictions.

Advantages of Desktop Appraisals

Faster Turnaround Time: Without the need for scheduling on-site visits, a desktop appraisal can often be completed in a matter of days - sometimes even hours - compared to the one to three weeks it may take for a full appraisal.

Cost-Effective: Desktop appraisals are typically less expensive than traditional ones, with costs often ranging between $75 to $200, compared to $300 to $500 or more for full appraisals.

Less Intrusive: Since no one needs to visit the home, desktop appraisals are more convenient for homeowners who may not want the hassle of coordinating an in-person inspection.

Reduced Bias: With no physical interaction, the likelihood of subjective bias due to a home's appearance, location or occupant decreases.

Scalability for Lenders: Lenders with large loan portfolios can quickly obtain valuations across multiple properties, making this an efficient solution for bulk transactions.

Limitations and Risks of Desktop Appraisals

Limited Data Accuracy: If the data sources are outdated, inaccurate or incomplete, the final appraisal may not reflect the property's true market value.

Not Universally Accepted: Many lenders and loan products still require traditional appraisals. Desktop appraisals may not meet FHA, VA or USDA lending guidelines.

Not Suitable for Complex Properties: Homes with unusual features, major upgrades or located in volatile markets may require more detailed, in-person evaluation.

Regulatory Compliance: Appraisers must ensure that their desktop appraisal complies with USPAP (Uniform Standards of Professional Appraisal Practice), including proper disclosures, data verification and scope of work documentation.

Desktop Appraisal Forms and Tools

To conduct a desktop appraisal, professionals typically use specific appraisal forms. The most common is Form 1004 Desktop, a variant of the Uniform Residential Appraisal Report. In some cases, a Form 70D may be used when fewer reporting requirements apply.

Appraisers may also rely on automated systems such as:

Fannie Mae's Desktop Underwriter® (DU)

Freddie Mac's Loan Product Advisor®

These systems assist underwriters in evaluating credit risk and qualifying borrowers efficiently, using data such as credit scores, income, assets and appraisal results.

Who Can Perform Desktop Appraisals?

Licensed or certified appraisers are the only professionals authorized to perform a desktop appraisal. However, appraiser trainees can complete them under direct supervision, making it a good training tool.

Importantly, the appraiser should have prior experience in the subject’s market area to ensure accurate interpretations of local market conditions.

How to Prepare for a Desktop Appraisal

If you’re involved in a transaction where a desktop appraisal might be used, here are a few steps to ensure a smooth process:

Provide Updated Property Information: Share recent renovation details, photos or available floor plans.

Ensure Public Records Are Correct: Verify that tax records and MLS listings accurately reflect the property’s square footage, lot size, and features.

Be Aware of Eligibility Requirements: Understand that not all properties qualify for desktop appraisals.

Understand the Timeline: While faster than traditional appraisals, the timeline still depends on data availability and the appraiser's schedule.

The Future of Desktop Appraisals

As digital solutions continue to reshape real estate, desktop appraisals are expected to play a larger role, particularly in:

Pandemic or disaster response situations

High-volume markets

Remote property evaluations

Green-lighting fast closings in competitive markets

Government-sponsored enterprises (GSEs) like Fannie Mae and Freddie Mac have already tested the risk performance of desktop appraisals and found them comparable to traditional ones in certain scenarios. As tools and datasets become more robust, expect desktop appraisals to become even more common in mortgage lending.

Final Thoughts

Desktop appraisals are a sign of the digital transformation sweeping across the real estate industry. They offer speed, cost savings and convenience- but they aren’t a one-size-fits-all solution. By understanding how they work, when they’re used, and what their strengths and limitations are, both lenders and borrowers can make informed decisions about property valuation.

At Suntel Global, we specialize in staying ahead of industry trends. Whether you're processing a mortgage, managing real estate portfolios or just exploring modern valuation tools, our expert team is here to support your goals with data-backed insights and scalable solutions.

[allianzebpo]

[shrinkrants]

social scientists have a term, “reification,” for the process by which the effects of a political arrangement of power and resources start to seem like objective, inevitable facts about the world. Reification swaps out a political problem for a scientific or technical one; it’s how, for example, the effects of unregulated tech oligopolies become “social media addiction,” how climate catastrophe caused by corporate greed becomes a “heat wave” — and, by the way, how the effect of struggles between labor and corporations combines with high energy prices to become “inflation.” Examples are not scarce. For people in power, the reification sleight of hand is very useful because it conveniently abracadabras questions like “Who caused this thing?” and “Who benefits?” out of sight. Instead, these symptoms of political struggle and social crisis begin to seem like problems with clear, objective technical solutions — problems best solved by trained experts. In medicine, examples of reification are so abundant that sociologists have a special term for it: “medicalization,” or the process by which something gets framed as primarily a medical problem. Medicalization shifts the terms in which we try to figure out what caused a problem, and what can be done to fix it. Often, it puts the focus on the individual as a biological body, at the expense of factoring in systemic and infrastructural conditions. -- Danielle Carr

[system-of-a-feather]

Hey outsourcing before I do my own research and reading. I'm a Southern Californian desert dweller moved to Colorado

Anyone got any winter / snow tips particularly relating to car maintence and driving please drop them below ^^