Indian insurers to spend 101 bn rupees on IT in 2013

IT services to overtake telecommunications as the largest spending area

Indian insurers are about to go on a spending spree! Market research and advisory firm Gartner predicts that insurance firms in India will spend 101 billion rupees on IT products and services in 2013, an increase of more than 9 per cent over 2012 when they spent an approximate 92.5 billion rupees.

The forecast includes spending by insurers on internal IT (including personnel), hardware, software, external IT services and telecommunications.

Gartners findings auger well, particularly for IT services firms since insurers will spend an estimated 30.6 billion rupees on consuming their services in 2013. IT services is achieving the highest growth rate amongst the top level IT spending segmentsforecast to exceed 13 per cent in 2013, with growth of 23.4 per cent forecast for business process outsourcing services. Consulting is also a high growth segment at over 18.2 per cent in 2013.

Says Derry Finkeldey, principal analyst at Gartner, We are continuing to see Indian insurers lead the charge to outsourcing and business process outsourcing. The Indian insurance industry is experiencing huge growth in transaction volumes, and Indian consumers are quite progressive in terms of seeking online and mobile services. Insurers are turning to experienced IT vendors to help them navigate the inevitable complexity this is producing.

The Indian domestic market for IT services is dynamic and highly competitivewith many of the leading names focused on the insurance sector and offering their own proprietary solutions for the industry. This competitiveness is ultimately great for insurance buyers. Nike Shox TLX 0018

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