The Smart Techie was renamed Siliconindia India Edition starting Feb 2012 to continue the nearly two decade track record of excellence of our US edition.
April - 2012 - issue > Rear View
HYPER SPECIALIZATION The new differentiator in IT Services
Ganesh Pai
Head of Insurance Market Unit-MphasiS
With over 22 years of experience in the IT industry, he has been responsible for establishing strategic outsourcing relationships with Fortune 500 corporations across the globe. He has launched new and innovative service offerings in the U.S.
markets, spearheaded the effort for setting up and growing the insurance business at MphasiS and more recently, successfully led two M&A transactions involving the acquisition of a captive IT organization of a global insurance company and Wyde Corporation.
Market Overview
There is a lot of progress that has been happening in our enterprise business units and insurance is one of the few chosen verticals in which we are looking at both life and amenities as well as property and cash segments of the industry. For both segments we provide IT and BPO assistance, which is an end to end responsibility. About 11 percent of the company’s revenue comes from this business unit. In 2011, the insurance industry as a whole has taken a hit because of all the natural calamities— the tsunami and hurricanes in both Japan and U.S. Every time there is a natural calamity in any part of the world, the losses are very high. But despite this, the insurance industry is getting back on the track. Traditionally for the insurance companies, regardless of these losses their profitability has never been an issue because the investment environment has been lot more stable. The main source for their income is the investment income. Whatever premiums they collect they set it aside for the losses and the rest they often invest. The investment scenario has put a lot of pressure on the investment companies. The forecast for 2012 is that the IT and Operational areas expect a marginal increase in spend. In general, most of the insurance companies spend between 2.5 to 5 percent of their revenue towards IT and Operations.
Key trends in the industry
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