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Mumbai, India, October 4, 2011 View All Press Releases

Gartner Says Indian Insurers to Spend $1.8 Billion on IT in 2012

Telecommunications Will be Largest Spending Area, with IT Services Growing the Fastest



Indian insurance companies will spend $ 1.8 billion on IT products and services in 2012, an increase of 11.7 percent over 2011 revenue of $ 1.6_billion, according to Gartner, Inc. This forecast includes spending by insurers on internal IT (including personnel), hardware, software, external IT services and telecommunications.

Telecommunications represents the biggest spending category, and it is forecast to reach $566 million in 2012, up from $512 million in 2011. However, spending on IT services is expected to grow the fastest in 2012, with revenue totaling $447 million in 2012, up 15.8 percent over 2011 revenue of $386_million.

Indian insurers are faced with an opportunity to transform significant aspects of their operations via technology, right across the entire insurance business value chain.

“Indian insurers have shown themselves to be particularly forward with regards to considering alternative delivery models such as business process outsourcing,” said Derry Finkeldey, principal analyst at Gartner. “External factors, such as regulatory change, uncertain economic conditions and the increasing frequency of catastrophic events, are forcing insurers to reassess their approaches to business processes and the IT applications that enable them to derive greater efficiency and achieve more with less.”

“Insurers are looking for ways to streamline their processes from the front office to the back office, and are investing in the next generation of core solutions to help them do that,” said Ms Finkeldey. “These solutions often integrate business process management (BPM) and analytics capabilities, or are offered in an ‘as a service’ model.”

Further information on insurance sector IT spending is available in the Gartner report: ‘Forecast: Enterprise IT Spending by Vertical Industry Market, Worldwide, 2009-2015, 2Q11 Update’, available at http://www.gartner.com/resId=1746317. 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.

Key issues facing the Indian IT industry will be examined at Gartner Symposium/ITxpo, November 21-23, at the Renaissance Mumbai Convention Centre Hotel & Marriott Executive Apartments, in Mumbai.

About Gartner Symposium/ITxpo
Gartner Symposium/ITxpo is the industry's largest and most important annual gathering of CIOs and senior IT executives. This event delivers independent and objective content with the authority and weight of the world's leading IT research and advisory organisation, and provides access to the latest solutions from key technology providers. Gartner's annual Symposium/ITxpo events are key components of attendees' annual planning efforts. They rely on Gartner Symposium/ITxpo to gain insight into how their organisations can use IT to address business challenges and improve operational efficiency.

Upcoming dates and locations for Gartner Symposium/ITxpo include:

October 3-5, Tokyo, Japan: www.gartner.com/jp/symposium

October 16-20, Orlando, Florida: www.gartner.com/us/symposium

October 25-27, Sao Paulo, Brazil: www.gartner.com/br/symposium

November 7-10, Barcelona, Spain: www.gartner.com/eu/symposium

November 14-17, Gold Coast, Australia: www.gartner.com/au/symposium

November 21-23, Mumbai, India: www.gartner.com/in/symposium

Journalists can register by contacting Sony Shetty, Gartner PR on +91 9820900036 or sony.shetty@gartner.com

Additional information from the event will be shared on Twitter at http://twitter.com/Gartner_incand using #GartnerSym.

 

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