Insurers in Asia Receptive to IT Outsourcing, Finds Survey
According to IDC Financial Insights’ latest report, while insurers typically still have the tendency to look inwards rather than outsource, the marketplace is growing increasingly challenging and insurance carriers in Asia-Pacific are becoming increasing aware of the benefits of outsourcing technology in order to compete in today’s marketplace. Insurers here have hitherto been laggards in IT spending, but the economic malaise has driven home the need to create a more dynamic business framework through the assistance of technology. The findings are presented in the report ‘Insurance Vendors: Spotlighting the Major Players in Asia-Pacific’, which assesses the insurance technology vendors in Asia-Pacific and the products and services they provide.
This report casts the spotlight on three enterprise-wide technology firms: CSC, IBM and SAP, and six insurance technology (InsTech) firms: 3i Infotech, Cognizant, EAB Systems, eBao Technologies, Mastek and Perot Systems. It provides coverage of each company including their strategic objectives; approach to product development, deployment and support; value proposition and competitive differentiation; market footprint and client profile; and an overview of major products. It also provides IDC Financial Insights’ assessment of the strengths and limitations of these respective vendors.
IDC Financial Insights Asia-Pacific recommends that insurers exploring IT outsourcing ascertain that the vendor’s offerings correlate with their requirements, make decisions around the extent of customisation preferred and the choice of multiple versus one-system solutions, and examine the vendor’s footprint of reference clients.
To succeed in this market, the company advises technology vendors to identify niches or underserved segments that they can tap into. They must also understand the state of the insurance industry and its shifting client demographics. Ideally, they should assist insurers in building agility and efficiencies, and help them manage their ecosystem of relationships by leveraging information with greater granularity and insight in order to make smarter, more profitable business decisions.