The Build Vs. Buy Debate
Key points of consideration for any insurer undertaking include assessing the uniqueness of need and IT software maturity.
The business case for new core systems is clear to many insurers who are laden with antiquated systems. What is less apparent is the approach they should take in addressing this problem. In a new Celent report, , the advantages and disadvantages of building versus buying packaged software are considered.
"There are undoubtedly pros and cons to each approach," notes Catherine Stagg-Macey, senior analyst and one of the authors of the report. "These need to be carefully considered when choosing one approach over the other."
This report examines some of the rationales, advantages, and disadvantages of each path. While there is no single option that is universally best, Celent recommends that insurers carefully consider immediate and long-term needs and costs, project risk, and organizational capabilities as part of the build vs. buy decision process.
The 15 page report contains two figures. A table of contents is available online.of Celent's Life/Health Insurance and Property/Casualty Insurance research services can download the report electronically by clicking on the icon to the left. Non-members should contact firstname.lastname@example.org for more information.