Indian Insurers to Spend $1.8 Billion on IT in 2012

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Indian insurance companies will spend $ 1.8 billion on IT products and services in 2012, an increase of 11.7 per cent over 2011 revenue of $ 1.6 billion, according to Gartner. 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 per cent over 2011 revenue of $386 million.

Derry Finkeldey (Principal analyst, Gartner): Indian insurers have shown themselves to be particularly forward with regards to considering alternative delivery models such as business process outsourcing .