Half of UK insurers say IT is too complex for them to handle on their own,
according to research by CMG Admiral.
Forty per cent of firms say technology drives their business and a further
10 per cent say it soon will. But 50 per cent of insurance companies
believe technology has become too complex for internal IT departments to
handle on their own.
Forty per cent of insurers say needing access to unlimited skills is the
biggest reason for outsourcing IT.
Forty per cent say their biggest fear with outsourcing is that third
parties will not understand their businesses. But only 10 per cent feel
that outsourcing is better suited to big organisations.
CMG says the survey, which polled senior insurance professionals, suggests
that choosing an IT outsourcing partner is critical.
CMG Admiral director Mike Woods says: “Insurers realise they need IT
systems to be reliable and business focused. Many insurers understand that
by deploying the skills of external IT companies, they can focus on their
core business activities. IT companies need to do more to allay insurers'
fears on outsourcing.”