Key points of consideration for any insurer undertaking the build vs. buy debate include assessing the uniqueness of need and IT software maturity.
The business case for new core systems is clear to many insurers who are laden with antiquated systems. What is less apparent is the approach they should take in addressing this problem. In a new Celent report, The Build vs. Buy Debate, the advantages and disadvantages of building versus buying packaged software are considered.
“There are undoubtedly pros and cons to each approach,” notes Catherine Stagg-Macey, senior analyst and one of the authors of the report. �These need to be carefully considered when choosing one approach over the other.�
This report examines some of the rationales, advantages, and disadvantages of each path. While there is no single option that is universally best, Celent recommends that insurers carefully consider immediate and long-term needs and costs, project risk, and organizational capabilities as part of the build vs. buy decision process.
The 15 page report contains two figures. A table of contents is available online.
Celent’s service offering falls into two categories, consulting and research, each of which is dedicated to technology in the financial services industry. We help banks, brokerage firms and insurance companies use IT to enter new markets in the shortest possible timeframes. All of our services are geared towards facilitating better informed, faster decision making. For more information visit www.celent.com.