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 email@example.com
Additional information from the event will be shared on Twitter at http://twitter.com/Gartner_incand using #GartnerSym.
Gartner, Inc. (NYSE: IT) is the world's leading information technology research and advisory company. We deliver the technology-related insight necessary for our clients to make the right decisions, every day. From CIOs and senior IT leaders in corporations and government agencies, to business leaders in high-tech and telecom enterprises and professional services firms, to technology investors, we are the valuable partner to clients in over 9,000 distinct enterprises worldwide. Through the resources of Gartner Research, Gartner Executive Programs, Gartner Consulting and Gartner Events, Gartner works with every client to research, analyze and interpret the business of IT within the context of their individual role. Founded in 1979, Gartner is headquartered in Stamford, Connecticut, USA, and has 6,400 associates, including more than 1,480 research analysts and consultants, and clients in 85 countries. For more information, visit www.gartner.com.
Comments or opinions expressed on this blog are those of the individual contributors only, and do not necessarily represent the views of Gartner, Inc. or its management. Readers may copy and redistribute blog postings on other blogs, or otherwise for private, non-commercial or journalistic purposes. This content may not be used for any other purposes in any other formats or media. The content on this blog is provided on an "as-is" basis. Gartner shall not be liable for any damages whatsoever arising out of the content or use of this blog.
© 2014 Gartner, Inc. and/or its Affiliates. All Rights Reserved.