The IT budgets of Indian insurance companies for 2016 is heading towards $2.11 billion, as they spend more on IT products and services, research by Gartner shows. According to the research firm, companies are seeking to leverage analytics and further digitalise their offerings.
In a recently released report, research and analyst firm Gartner explores the enterprise investment trend across the globe and in India. The report finds that IT budgets at most India-based insurance companies will rise next year, with the total market expected to increase 9.6% on 2015 to $2.11 billion*.
Especially the IT consulting services will benefit from the insurance company spend-up, at 32% of the market or $684 million. Enterprise software spending, including enterprise resource planning (ERP), supply chain management (SCM), and customer relationship management (CRM) is also expected to see fierce growth next year, up 22% to $14 million. Across the whole insurance industry, a considerable part of the budget will be invested in internal IT (including personnel), hardware, software, external IT services and telecommunications.
“Our research shows that Indian insurers are prioritising their technology investments for 2016 into digitalisation, and particularly analytics capabilities,” explains Derry Finkeldey, Research Director at Gartner. “They are primarily looking to digital to grow their businesses in the domestic market.”
* Calculated using the exchange rate from Indian Rupees to US dollars on 06/11/2015.