In the year 2013 the Indian insurance companies will spend around Rs 10,100 crore for their IT requirements predicts market research and advisory firm Gartner.
According to Gartner, the total spend by insurance players will witness a growth of more than 9 percent when compared to 2012. The research firm also said in 2012 insurance companies had made a total spend of around Rs 9,250 crore which includes both IT services and products.
Gartner further said that, IT services has overtaken telecommunications to become the biggest spending segment, and it is expected to reach Rs 3,060 crore in 2013, up from Rs 2,700 crore in 2012.
“We are continuing to see Indian insurers lead the charge to outsourcing and business process outsourcing,” said Derry Finkeldey, principal analyst at Gartner.
“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,” he added.
IT services is achieving the highest growth rate amongst the top level IT spending segments – forecast to exceed 13 percent in 2013, with growth of 23.4 percent forecast for business process outsourcing services. Consulting is also a high growth segment at over 18.2 percent in 2013, Gartner added.