Insurance organizations need to more effectively manage their growing portfolios of IT systems and find ways to gain sustainable competitive advantage from them. Outsourcing increasingly is being used to facilitate transformation objectives, rather than just cutting costs or delivering operational efficiencies.
In 2007, leading insurers will convert short-term piecemeal IT services projects to longer, multiyear strategic relationships. They will design collaborative sourcing strategies with best-of-breed partners under unified governance frameworks. These relationships will facilitate future year-on-year improvements -- including innovation and transformation of activities and processes -- enabling greater business value from outsourcing.