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85% of Insurers Outsource Some Element of Information Technology

Claims Journal (02/09/12) Denise Johnson

A new report by research and advisory firm Novarica, based on a survey of more than 100 U.S. insurer chief information officers, finds that 85% are currently outsourcing at least some elements of information technology, and between 25% and 35% are planning to increase their level of outsourcing in 2012.

Among the key findings of the report, large insurers outsource more than 25% of their IT work, while small and mid-size companies typically outsource only 15% of their IT work. More than a quarter of large insurers are planning to increase their reliance on outsourcing in variable staffing, legacy application maintenance, and data center/infrastructure.