Insurance companies are advised to procure solutions rather than build in-house and not be swayed by buzz words from vendors, according to an IDC Financial Insights report.
The study Vendor Assessment: Insurance Software Vendors - Definitive Players in Asia/Pacific recommend CIOs to obtain ready-made solutions from a vendor with good standing and outsource the systems, unless there are compelling reasons to have solutions developed completely in-house.
CIOs also need to understand their requirements well in order to decide on a sound IT strategy. There have been way too many instances where insurers have been swayed into purchasing inappropriate packages by vendors hawking offerings that boast the latest buzz words, or unnecessary bells and whistles.
There are other factors to consider including ease of use, degree of customisation, and vendors' industry accolades.
Finally, IT departments should retain a dedicated in-house IT capability even when outsourcing, and continually pay heed to the technologies that their fellow peers are investing in.
Meanwhile, the report has provided a comprehensive coverage of eight vendors that have established themselves as the preferred vendors of insurers in this region.
The list includes enterprise vendors CSC, Oracle, IBM, and SAP, and specialist players 3i Infotech, eBaoTech, Mastek and EAB Systems.
Each of the institutions brandishes its own unique value propositions, said Li-May Chew, CFA, associate director for IDC Financial Insights Asia/Pacific.
"IBM, for instance, is in a league of its own when it comes to the sheer range of solutions that it offers. It also has a presence in almost every part of the insurance value chain. eBaoTech, on the other hand, boasts a track record in technology innovation and advancements, and has recorded stellar performance in its implementations," said Chew.
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