Core and Insurance-specific Software Initiatives to Propel the Market in 2014
Indian insurance companies will spend 121 billion rupees on IT products and services in 2014, a 12 percent increase over 2013, according to Gartner, Inc. This forecast includes spending by insurers on internal IT (including personnel), hardware, software, external IT services and telecommunications.
The 12 billion rupee software segment is forecast to be the fastest growing segment of external spending, growing at 18 percent in 2014 overall, lifted by accelerated growth of insurance-specific software. IT services, the biggest spending segment for the insurance industry at 40 billion rupees in 2014, will continue to realize robust growth of 16 percent. Category leaders are business process outsourcing (BPO) at 25 percent and consulting – much of which relates to these insurance-specific application investments – at 21 percent.
“Insurers in India are getting serious about their core insurance processes, especially where they help increase insurer penetration of the market,” said Derry Finkeldey, principal analyst at Gartner. “While internal spending is also increasing, Indian insurers have been quick to turn to the competitive technology provider sector in India for guidance and delivery.”
Further information on insurance sector IT spending is available in the Gartner report, ‘Forecast: Enterprise IT Spending by Vertical Industry Market, Worldwide, 2011-2017, 4Q13 Update’, available at http://www.gartner.com/doc/2659424. This vertical industries forecast provides total enterprise IT spending, including internal spending and multiple lines of detail for spending on hardware, software, IT services, and telecommunications for vertical industries and 43 countries within seven geographies.
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