Everest Group's Report Analyzes 18 Leading IT Outsourcing Service Providers in Insurance Sector

By Sujata Garud
TMCnet Contributor

Everest Group has released its recent study “Application Outsourcing in Insurance: PEAK Into the Evolving Service Provider Landscape” which analyzes the capabilities of 18 leading service providers for IT Applications Outsourcing in the insurance vertical.

In a press release, Amneet Singh, vice president of Global Sourcing at Everest Group, said, “During the slowdown phase of the economy, Leaders lost share when discretionary spending was put on hold whereas other service providers with more specialized offerings saw an uptick in business as buyers sought to execute smaller contracts for specialized requirements. With the economy returning to growth in 2010, the market-leading service providers benefitted at the expense of the smaller, specialized providers as the result of buyers regaining their appetites for broader and larger outsourcing contracts.”

The research group analyzed 18 service providers having revenues over US$5.3 billion and 66,000 full-time employees spread across 20 delivery countries. Based on the performance and capabilities, the providers were classified on its Performance/Experience/Ability/Knowledge (PEAK) matrix into categories of Leaders, Major Contenders and Emerging Players. Companies like Accenture, Cognizant, CSC, IBM and TCS were among leaders, Capgemini (News - Alert), CGI, HCL, HP, Infosys, L&T Infotech, MphasiS and Wipro were among major contenders, while emerging players included Atos, Hexaware, Mindtree, Softtek and Syntel (News - Alert).

As per the report, leaders have the strongest portfolio of proprietary solutions for insurance AO delivery. Major contenders have augmented their delivery capability by establishing relevant product partnerships in this vertical and are growing scale through acquisitions. Emerging players have leveraged their strength in broader application services and tailored their offerings to meet the specific requirements of insurance AO buyers. Multi-tower contracts are more commonly signed by leaders and major contenders whereas emerging players focus on pure AO services. Leaders have a much broader global delivery footprint compared to major contenders and emerging players.

Everest Group was in news recently when it stated that pharmaceutical firms are expected to continue increasing their spend on global sourcing after signing a record number of contracts in 2010.

Sujata Garud is a TMCnet freelancer with three years of writing/editing experience and two years of market research experience. As an editor she has covered the IT, electronics, banking, pharma, construction, mining and healthcare industries. To see more of her articles, please visit her columnist page.

Edited by Rich Steeves