Indian insurance companies are expected to spend 117 billion rupees on IT products and services in 2014, a 5 percent increase over 2013, according to Gartner Inc. This forecast includes spending by insurers on internal IT (including personnel), hardware, software, external IT services and telecommunications.
Indian insurance companies are on pace to spend 4.1 billion rupees on mobile devices in 2014, up 35 percent from 2013.
“Gartner research shows that most Indian insurance CIOs view mobile enablement of applications and services as a very important component of their strategies to improve sales and channel effectiveness,” said Derry Finkeldey, research director at Gartner. “This is especially important as insurers compete to reach agents and customers distributed across the country and outside of saturated urban markets.”
The overall mobile device market in India is showing strong growth. For example, the nascent tablet market in India is projected to grow 160 percent in 2014. As the tablet market breaks through the 200 million rupee mark this year, growth is expected to be in the moderate double-digits range. The much larger 3.8 billion rupee market for other mobile devices will grow 24 percent in 2014, with revenue of 926 million rupees. While the 11 billion rupee mobile network services market is growing, its 12.8 billion rupee fixed network sibling is in decline, and will be overtaken in size by mobile spending by 2016.
Further information on insurance sector IT spending is available in the Gartner report, ‘Forecast: Enterprise IT Spending by Vertical Industry Market, Worldwide, 2012-2018, 1Q14 Update’, available at http://www.gartner.com/document/2708517. This vertical industries forecast provides total enterprise IT spending, including internal spending and multiple lines of detail for spending on hardware, software, IT services, and telecommunications for vertical industries and 43 countries within seven geographies.