Main Article Content
Abstract
Outsourcing has become a widely adopted strategy to enhance operational efficiency in the rapidly changing medical schemes sector. However, it also poses challenges in maintaining brand identity and differentiating between medical schemes and third-party administrators. This study examines the impact of outsourcing on brand extension and website development within medical schemes, utilizing a mixed-method research approach that includes a comprehensive literature review and detailed case study analyses. It explores the distribution of administration fees, identifying distinct patterns and potential anomalies in fee rates across various operational models. Additionally, the research investigates complaints about medical scheme websites, emphasizing the crucial role of accurate and reliable online resources in ensuring member satisfaction. Complaints about these websites predominantly concern failures to update content and discrepancies in network information, each accounting for 28% of the issues reported. Other concerns include transparency, accuracy of information, claims disputes, and unmet coverage expectations, underscoring the need for significant improvements in website management to build trust and enhance the member experience. The analysis also highlights that schemes managing operations internally incur higher administration expenses than those outsourcing these functions. The study recommends that medical schemes focus on clearly distinguishing themselves from third-party administrators in branding and communication by developing distinct brand identities that reflect their unique value propositions and services. There is a critical need to improve the functionality and transparency of scheme websites to enhance member engagement and satisfaction, especially for schemes with their unique sites. This study provides a comprehensive overview of the importance of brand identity and customer service in shaping the healthcare experience for members of medical schemes, offering practical recommendations for industry stakeholders and policymakers.
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References
- Da Costa, M., & Akhunjonov, U. (2018). Using outsourcing as a competitive edge: The case of medical aid schemes. International Journal of Management Science and Business Administration, 5(1), 23–29. https://doi.org/10.18775/ijmsba.1849-5664-5419.4
- Aaker, D. (1996). Building strong brands. The Free Press.
- Baldwin, L. P., Irani, Z., & Love, P. (2001). Outsourcing Information Systems: Drawing Lessons from a Banking Case Study. European Journal of Information Systems, 10(1), 15–24.
- Bansal, D. (2024). How SEO makes website loads faster and helps in user engagement. International Journal For Multidisciplinary Research, 6(2), March-April 2024. https://doi.org/10.36948/ijfmr.2024.v06i02.15291
- Borghouts, J., Eikey, E., Mark, G., Leon, C. D., Schueller, S. M., Schneider, M., Stadnick, N., Zheng, K., Mukamel, D., & Sorkin, D. H. (2021). Barriers to and Facilitators of User Engagement With Digital Mental Health Interventions: Systematic Review. Journal of Medical Internet Research, 23(3). https://doi.org/10.2196/24387
- Compcare Wellness Medical Scheme v Registrar of Medical Schemes. (2020, August 17). Southern African Legal Information Institute (SAFLII). Retrieved from https://www.saflii.org/za/cases/ZASCA/2020/102.html
- Denga, E. M., Vajjhala, N. R., & Asortse, S. (2023). Digital branding in the digital era. In E. M. Denga, N. R. Vajjhala, & S. Asortse (Eds.), The role of brands in an era of over-information (Chapter 8). https://doi.org/10.4018/978-1-6684-8351-0.ch008
- Du Preez, R., & Bendixen, M. (2019). Outsourcing contact centers: Internal branding challenges and consequences. Journal of Business and Industrial Marketing, 34(3). https://doi.org/10.1108/JBIM-10-2018-0311.
- Farhana, M. (2012). Brand Elements Lead to Brand Equity: Differentiate or Die. Information Management and Business Review, 4, 223–233.
- Ganguly, B., Dash, S. B., Cyr, D., & Head, M. M. (2010). The effects of website design on purchase intention in online shopping: The mediating role of trust and the moderating role of culture. International Journal of Electronic Business, 8(4), 302–330. https://doi.org/10.1504/IJEB.2010.035289
- Garett, R., Chiu, J., Zhang, L., & Young, S. D. (2016). A Literature Review: Website Design and User Engagement. Online Journal of Communication and Media Technologies, 6(3), 1. https://www.ncbi.nlm.nih.gov/pmc/articles/PMC4974011/
- Hill, W. L. C. (2002). International Business: Competing in the Global Marketplace. McGrraw-Hill.
- Huseynov, F. (2023). Chatbots in digital marketing: Enhanced customer experience and reduced customer service costs. In F. Huseynov (Ed.), Contemporary Approaches of Digital Marketing and the Role of Machine Intelligence (Chapter 3). https://doi.org/10.4018/978-1-6684-7735-9.ch003
- Islami, X., Mustafa, N., & Topuzovska Latkovikj, M. (2020). Linking Porter's generic strategies to firm performance. Future Business Journal, 6(1), 1-15. https://doi.org/10.1186/s43093-020-0009-1
- Kan Yeung, A. W., Torkamani, A., Butte, A. J., Glicksberg, B. S., Schuller, B., Rodriguez, B., ... Atanasov, A. G. (2023). The promise of digital healthcare technologies. Frontiers in Public Health, 11. https://doi.org/10.3389/fpubh.2023.1196596
- Keller, K. L. (1993). Conceptualizing, measuring, and managing customer-based brand equity. Journal of Marketing, 57(1), 1-22. https://doi.org/10.1177/002224299305700101
- Keller, K. L., & Aaker, D. (1992). The Effects of Sequential Introduction of Brand Extensions. Journal of Marketing Research, 29, 35-50.
- Kimani, I., & Kungu, P. (2024). Differentiation strategy and the performance of medical insurance companies in Kenya. International Journal of Business Management Entrepreneurship and Innovation, 6(2), 69-90. https://doi.org/10.35942/0tjve607
- Labadze, L., Grigolia, M., & Machaidze, L. (2023). Role of AI chatbots in education: Systematic literature review. International Journal of Educational Technology in Higher Education, 20(1), 1–17. https://doi.org/10.1186/s41239-023-00426-1
- Leeman, D., & Reynolds, D. (2012, June). Trust and outsourcing: Do perceptions of trust influence the retention of outsourcing providers in the hospitality industry? International Journal of Hospitality Management, 31(2), 601–608. https://doi.org/10.1016/j.ijhm.2011.08.006
- Leimeister, S. (2010). Theoretical Background on Outsourcing. In S. Leimeister (Ed.), IT Outsourcing Governance. Gabler. https://doi.org/10.1007/978-3-8349-6303-1_3
- Luft, J. A., Jeong, S., Idsardi, R., & Gardner, G. (2021). Literature Reviews, Theoretical Frameworks, and Conceptual Frameworks: An Introduction for New Biology Education Researchers. CBE Life Sciences Education, 21(3). https://doi.org/10.1187/cbe.21-05-0134
- Martínez, E., Montaner, T., & Pina, J. M. (2009). Brand extension feedback: The role of advertising. Journal of Business Research, 62(3), 305-313. https://doi.org/10.1016/j.jbusres.2008.05.009
- Ng, M., Lawlor, J., Chandra, S., Chaya, C., Hewson, L., & Hort, J. (2012). Quantitative descriptive analysis and temporal dominance of sensations analysis are complementary methods for profiling commercial blackcurrant squashes. Food Quality and Preference, 25(2), 121–134. https://doi.org/10.1016/j.foodqual.2012.02.004
- Paun, G. (2020, July 2). Building a brand: Why a strong digital presence matters. Forbes. https://www.forbes.com/sites/forbesagencycouncil/2020/07/02/building-a-brand-why-a-strong-digital-presence-matters/
- Pitta, D. A., & Katsanis, L. P. (1995). Understanding brand equity for successful brand extension. Journal of Consumer Marketing, 12(4), 51-64. https://doi.org/10.1108/07363769510095306
- Pullig, C., Simmons, C. J., & Netemeyer, R. G. (2006). Brand dilution: When do new brands hurt existing brands? Journal of Marketing, 70(2), 52-66. https://doi.org/10.1509/jmkg.70.2.52
- Roberts, J. G., Henderson, J. G., Olive, L. A., & Obaka, D. (2013). A review of outsourcing of services in health care organizations. Journal of Outsourcing and Organizational Information Management.
- Rusho, Y., & Raban, D. R. (2020). Experiencing information, acquiring knowledge, and making decisions regarding web accessibility. Online Journal of Applied Knowledge Management, 7(1), 32-52. https://doi.org/10.36965/OJAKM.2020.8(1)32-52
- Skipworth, H., Delbufalo, E., & Mena, C. (2020). Logistics and procurement outsourcing in the healthcare sector: A comparative analysis. European Management Journal, 38(3), 518–532. https://doi.org/10.1016/j.emj.2020.04.002
- Swaminathan, V. (2003, February). Sequential brand extensions and brand choice behavior. Journal of Business Research, 56(6), 431–442. https://doi.org/10.1016/S0148-2963(01)00242-9
- Tayntor, Ch. B. (2001). A Practical Guide to Staff Augmentation and Outsourcing. Information Systems Management, 18(1), 84-91.
- Turner, K. (2023, August 2). Turning website visitors into customers with user experience. DNN Website Design. Retrieved from https://www.itmwebsitedesign.com/news/turning-website-visitors-into-customers-with-user-experience
- Vallone, D., Greenberg, M., Xiao, H., Bennett, M., Cantrell, J., Rath, J., & Hair, E. (2017). The Effect of Branding to Promote Healthy Behavior: Reducing Tobacco Use among Youth and Young Adults. International Journal of Environmental Research and Public Health, 14(12). https://doi.org/10.3390/ijerph14121517
- Vel, P., Suhail, L., Satyanarayan, R., & Easo, S. (2011). Conception, nurturing, leveraging, and sustenance of a successful brand. Procedia - Social and Behavioral Sciences, 25, 1-15. https://doi.org/10.1016/j.sbspro.2011.10.523
- Wickham, R. J. (2019). Secondary Analysis Research. Journal of the Advanced Practitioner in Oncology, 10(4), 395–400. https://doi.org/10.6004/jadpro.2019.10.4.7
- Willie, M. M. (2023). Eye care services and benefits paid by medical schemes in South Africa. African Vision Eye Health, 82(1), a756. https://doi.org/10.4102/
- Yin, R. K. (2014). Case study research: Design and methods (5th ed.). Thousand Oaks, CA: Sage.
- Young, S. (2007). Outsourcing: Uncovering the complexity of the decision. International Public Management Journal, 10(3), 307–325.
- Zwakala, K. M., & Steenkamp, P. (2023). Brand identity-image fit in professional services in South Africa: Is brand co-creation a panacea? Journal of Contemporary Management, 20(1), 444-473.
References
Da Costa, M., & Akhunjonov, U. (2018). Using outsourcing as a competitive edge: The case of medical aid schemes. International Journal of Management Science and Business Administration, 5(1), 23–29. https://doi.org/10.18775/ijmsba.1849-5664-5419.4
Aaker, D. (1996). Building strong brands. The Free Press.
Baldwin, L. P., Irani, Z., & Love, P. (2001). Outsourcing Information Systems: Drawing Lessons from a Banking Case Study. European Journal of Information Systems, 10(1), 15–24.
Bansal, D. (2024). How SEO makes website loads faster and helps in user engagement. International Journal For Multidisciplinary Research, 6(2), March-April 2024. https://doi.org/10.36948/ijfmr.2024.v06i02.15291
Borghouts, J., Eikey, E., Mark, G., Leon, C. D., Schueller, S. M., Schneider, M., Stadnick, N., Zheng, K., Mukamel, D., & Sorkin, D. H. (2021). Barriers to and Facilitators of User Engagement With Digital Mental Health Interventions: Systematic Review. Journal of Medical Internet Research, 23(3). https://doi.org/10.2196/24387
Compcare Wellness Medical Scheme v Registrar of Medical Schemes. (2020, August 17). Southern African Legal Information Institute (SAFLII). Retrieved from https://www.saflii.org/za/cases/ZASCA/2020/102.html
Denga, E. M., Vajjhala, N. R., & Asortse, S. (2023). Digital branding in the digital era. In E. M. Denga, N. R. Vajjhala, & S. Asortse (Eds.), The role of brands in an era of over-information (Chapter 8). https://doi.org/10.4018/978-1-6684-8351-0.ch008
Du Preez, R., & Bendixen, M. (2019). Outsourcing contact centers: Internal branding challenges and consequences. Journal of Business and Industrial Marketing, 34(3). https://doi.org/10.1108/JBIM-10-2018-0311.
Farhana, M. (2012). Brand Elements Lead to Brand Equity: Differentiate or Die. Information Management and Business Review, 4, 223–233.
Ganguly, B., Dash, S. B., Cyr, D., & Head, M. M. (2010). The effects of website design on purchase intention in online shopping: The mediating role of trust and the moderating role of culture. International Journal of Electronic Business, 8(4), 302–330. https://doi.org/10.1504/IJEB.2010.035289
Garett, R., Chiu, J., Zhang, L., & Young, S. D. (2016). A Literature Review: Website Design and User Engagement. Online Journal of Communication and Media Technologies, 6(3), 1. https://www.ncbi.nlm.nih.gov/pmc/articles/PMC4974011/
Hill, W. L. C. (2002). International Business: Competing in the Global Marketplace. McGrraw-Hill.
Huseynov, F. (2023). Chatbots in digital marketing: Enhanced customer experience and reduced customer service costs. In F. Huseynov (Ed.), Contemporary Approaches of Digital Marketing and the Role of Machine Intelligence (Chapter 3). https://doi.org/10.4018/978-1-6684-7735-9.ch003
Islami, X., Mustafa, N., & Topuzovska Latkovikj, M. (2020). Linking Porter's generic strategies to firm performance. Future Business Journal, 6(1), 1-15. https://doi.org/10.1186/s43093-020-0009-1
Kan Yeung, A. W., Torkamani, A., Butte, A. J., Glicksberg, B. S., Schuller, B., Rodriguez, B., ... Atanasov, A. G. (2023). The promise of digital healthcare technologies. Frontiers in Public Health, 11. https://doi.org/10.3389/fpubh.2023.1196596
Keller, K. L. (1993). Conceptualizing, measuring, and managing customer-based brand equity. Journal of Marketing, 57(1), 1-22. https://doi.org/10.1177/002224299305700101
Keller, K. L., & Aaker, D. (1992). The Effects of Sequential Introduction of Brand Extensions. Journal of Marketing Research, 29, 35-50.
Kimani, I., & Kungu, P. (2024). Differentiation strategy and the performance of medical insurance companies in Kenya. International Journal of Business Management Entrepreneurship and Innovation, 6(2), 69-90. https://doi.org/10.35942/0tjve607
Labadze, L., Grigolia, M., & Machaidze, L. (2023). Role of AI chatbots in education: Systematic literature review. International Journal of Educational Technology in Higher Education, 20(1), 1–17. https://doi.org/10.1186/s41239-023-00426-1
Leeman, D., & Reynolds, D. (2012, June). Trust and outsourcing: Do perceptions of trust influence the retention of outsourcing providers in the hospitality industry? International Journal of Hospitality Management, 31(2), 601–608. https://doi.org/10.1016/j.ijhm.2011.08.006
Leimeister, S. (2010). Theoretical Background on Outsourcing. In S. Leimeister (Ed.), IT Outsourcing Governance. Gabler. https://doi.org/10.1007/978-3-8349-6303-1_3
Luft, J. A., Jeong, S., Idsardi, R., & Gardner, G. (2021). Literature Reviews, Theoretical Frameworks, and Conceptual Frameworks: An Introduction for New Biology Education Researchers. CBE Life Sciences Education, 21(3). https://doi.org/10.1187/cbe.21-05-0134
Martínez, E., Montaner, T., & Pina, J. M. (2009). Brand extension feedback: The role of advertising. Journal of Business Research, 62(3), 305-313. https://doi.org/10.1016/j.jbusres.2008.05.009
Ng, M., Lawlor, J., Chandra, S., Chaya, C., Hewson, L., & Hort, J. (2012). Quantitative descriptive analysis and temporal dominance of sensations analysis are complementary methods for profiling commercial blackcurrant squashes. Food Quality and Preference, 25(2), 121–134. https://doi.org/10.1016/j.foodqual.2012.02.004
Paun, G. (2020, July 2). Building a brand: Why a strong digital presence matters. Forbes. https://www.forbes.com/sites/forbesagencycouncil/2020/07/02/building-a-brand-why-a-strong-digital-presence-matters/
Pitta, D. A., & Katsanis, L. P. (1995). Understanding brand equity for successful brand extension. Journal of Consumer Marketing, 12(4), 51-64. https://doi.org/10.1108/07363769510095306
Pullig, C., Simmons, C. J., & Netemeyer, R. G. (2006). Brand dilution: When do new brands hurt existing brands? Journal of Marketing, 70(2), 52-66. https://doi.org/10.1509/jmkg.70.2.52
Roberts, J. G., Henderson, J. G., Olive, L. A., & Obaka, D. (2013). A review of outsourcing of services in health care organizations. Journal of Outsourcing and Organizational Information Management.
Rusho, Y., & Raban, D. R. (2020). Experiencing information, acquiring knowledge, and making decisions regarding web accessibility. Online Journal of Applied Knowledge Management, 7(1), 32-52. https://doi.org/10.36965/OJAKM.2020.8(1)32-52
Skipworth, H., Delbufalo, E., & Mena, C. (2020). Logistics and procurement outsourcing in the healthcare sector: A comparative analysis. European Management Journal, 38(3), 518–532. https://doi.org/10.1016/j.emj.2020.04.002
Swaminathan, V. (2003, February). Sequential brand extensions and brand choice behavior. Journal of Business Research, 56(6), 431–442. https://doi.org/10.1016/S0148-2963(01)00242-9
Tayntor, Ch. B. (2001). A Practical Guide to Staff Augmentation and Outsourcing. Information Systems Management, 18(1), 84-91.
Turner, K. (2023, August 2). Turning website visitors into customers with user experience. DNN Website Design. Retrieved from https://www.itmwebsitedesign.com/news/turning-website-visitors-into-customers-with-user-experience
Vallone, D., Greenberg, M., Xiao, H., Bennett, M., Cantrell, J., Rath, J., & Hair, E. (2017). The Effect of Branding to Promote Healthy Behavior: Reducing Tobacco Use among Youth and Young Adults. International Journal of Environmental Research and Public Health, 14(12). https://doi.org/10.3390/ijerph14121517
Vel, P., Suhail, L., Satyanarayan, R., & Easo, S. (2011). Conception, nurturing, leveraging, and sustenance of a successful brand. Procedia - Social and Behavioral Sciences, 25, 1-15. https://doi.org/10.1016/j.sbspro.2011.10.523
Wickham, R. J. (2019). Secondary Analysis Research. Journal of the Advanced Practitioner in Oncology, 10(4), 395–400. https://doi.org/10.6004/jadpro.2019.10.4.7
Willie, M. M. (2023). Eye care services and benefits paid by medical schemes in South Africa. African Vision Eye Health, 82(1), a756. https://doi.org/10.4102/
Yin, R. K. (2014). Case study research: Design and methods (5th ed.). Thousand Oaks, CA: Sage.
Young, S. (2007). Outsourcing: Uncovering the complexity of the decision. International Public Management Journal, 10(3), 307–325.
Zwakala, K. M., & Steenkamp, P. (2023). Brand identity-image fit in professional services in South Africa: Is brand co-creation a panacea? Journal of Contemporary Management, 20(1), 444-473.