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12% Increase in IT Spend Predicted for Indian Insurers

by: Sarah Joson

Monday, February 24, 2014 | Outsourcing News |

Indian Insurers to Spend 12% more on IT Services

According to Gartner Inc., insurance companies in India will be spending 12 percent more this year compared to 2013. The 121 billion rupees in 2014 will be spread across several IT segments in the insurance industry. These include internal IT (including personnel), hardware, software, external IT services, and telecommunications.

The software segment will be driven by insurance-specific software, making it the fastest external segment. It will also post figures of 12 billion rupees - 18 percent growth this year. IT services, on the other hand, will experience 16-percent growth, the largest segment at 40 billion rupees.

The top groups in the industry are business process outsourcing (BPO) with 25 percent, as well as consulting for insurance-specific application investments at 21 percent.

Gartner’s Principal Analyst Derry Finkeldey said Indian insurance companies are now focusing more on core insurance processes that can help them increase their presence in the market. The insurers turn to the vast volume of local technology providers in India for guidance and supply.


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