IT Outsourcing in Insurance – Annual Report: Insurance world preparing to ride the digital transformation wave

13 Nov 2014
by Archit Mishra, Jimit Arora

$4,999.00

Introduction

The Banking, Financial Services, and Insurance (BFSI) industry has been the largest adopter of global services and was instrumental in the rebound in the global sourcing market.

Continuing low interest rate environment, heightening regulatory compliance pressure, and evolving customer requirements created a challenging business environment for insurance firms. This led them to find innovative ways to optimize their businesses and enhance profitability. They reinvented their business models and technological priorities. As a result, 2013 saw strong return of the discretionary spend – led by investments in development of specific applications for regulatory compliance, data management, risk management, and digital initiatives (cloud, analytics, and mobility).

Consequently, the service provider competitive landscape is also intensifying, as service providers continue to ramp up their capabilities, invest in innovative technologies, form alliances, and acquire strategic targets to address the growing and complex technology needs of insurance companies.

In this research, we analyze the current trends and the future outlook for large, multi-year application outsourcing relationships for the global insurance sector. We focus on:

  • Trends in AO in the BFSI segment
  • Market trends and activity for large AO relationships in insurance
  • Emerging priorities of buyers and key investment themes in insurance AO
  • Future outlook for 2014-2015

The research also captures key movements in volume/value of insurance AO transactions, evolving trends, market dynamics, and emerging priorities of buyers in the last 12 months.

AO Contracts

SCOPE OF THE ANALYSIS

  • Industry: Insurance including life, annuity, pensions, and Property and Casualty (P&C); excludes banking, capital markets, and healthcare payers
  • Services: Large (TCV > US$25 million), multi-year (more than three years), and annuity-based application outsourcing
  • Geography: Global
  • Sourcing model: Third-party AO transactions; excludes shared services or Global In-house Centers (GICs)

Insurance AO Transactions

CONTENT

This report is structured across three key sections, each containing insights on application outsourcing in BFSI and banking sector, with a specific focus on large-sized contracts:

  • BFSI ITO market overview: Analysis of the overall BFSI IT Outsourcing (ITO) market and transaction trends:
    • Market size, growth, and industry segmentation
    • Market subvertical split
    • Transaction trends for BFSI ITO (e.g., transaction volumes and value)
    • Transaction trends by BFSI subverticals and geography
  • Insurance AO market overview: Analysis specific to the Insurance AO market with a focus on large transactions:
    • Trends and characteristics for large-sized transactions in insurance AO
    • Demand characteristics for Insurance AO services by lines of business, AO subfunctions, geography, and buyer size
    • Offshore leverage
    • Global delivery locations
    • Renewal activity and pricing trends
  • Emerging themes and implications: Analysis of emerging trends and their influence on the future of Insurance AO:
    • Factors altering the demand profile for insurance AO
    • Major technology investment in the insurance sector
    • Implications for key stakeholders – buyers and service providers
 

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