This is Celent’s third report profiling IT service vendors for the insurance industry. It covers 24 vendors from around the globe with a focus on having a North American presence.
Celent’s 2017 IT spending report estimates that 25%, or US$18.4 billion in 2017) of North American insurance company IT investments will be allocated to external services. The CAGR for external services is projected to be 10.8% from 2017 to 2019 as insurers continue to procure services from outside service providers to increase variable costs and cope with the difficulties of legacy systems.
IT service vendors have become an integral part of the insurance landscape; even the most self-reliant insurers with expert IT organizations have some experience with an IT services partner. There are many IT service vendors in North America of varying sizes, skills, and focus means it is difficult to create a comprehensive guide for the insurance industry. With this report, Celent looks to provide just such a guide, and although it is not an exhaustive list of IT service vendors, it captures a wide cross-section of the available vendors and functions, and over time will include more.
"The IT services market is recalibrating impacting service providers' opportunities and value propositions. Multiple trends and forces are creating this change including digital business imperatives, cloud, intelligent automation and business solutions," said Karen Monks, Analyst in Celent's Life Insurance practice. "Celent categorizes the services that vendors offer. This year they include a few services that were not available in our last review like digital consulting, Robotic Process Automation, and Data analytics."
