Insurers to spend Rs. 177bn on IT forecast in 2014: Gartner

‘Analysts will examine key trends in the insurance industry at Gartner Symposium/ITxpo 2013, October 21-24, Goa, India

October 21, 2013 3:51 IST | India Infoline News Service
Indian insurance companies will spend Rs. 107 billion on IT products and services in 2013, a 16 percent increase from 2012, according to Gartner, Inc. Insurance spending on IT will increase more than 9 percent in 2014 to reach Rs. 117 billion.  This forecast includes spending by insurers on internal IT (including personnel), hardware, software, external IT services and telecommunications.
Gartner analysts discussed the trends in the insurance industry at Gartner Symposium/ITxpo, being held here through October 24.
IT services will not only be the biggest spending segment for the insurance industry in 2014, but it will also be the fastest growing at 16.2 percent in 2014. This growth rate is continuing to be driven by strong uptake of business process outsourcing (BPO) at 24.1 percent and consulting at 20.1 percent. Growth is also strong for enterprise software at 20 percent, especially customer relationship management (CRM).
“Insurers in India are also looking to digitalize their processes – especially at the front end,” said Derry Finkeldey, principal analyst at Gartner. “Demand for consulting services around all aspects of the customer relationship and delivery of service (such as through mobility) is strong.”

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