American insurance carriers are turning to offshore IT development strategies, and Craig Weber, senior analyst for Celent Communications, says there is no mystery to the strategy. Its a short list, he remarks. The top three reasons for using the offshore model are cost, cost, and cost. I heard that from everybody I spoke with.

Weber interviewed carriers for a new study called Raising the Bar on Offshore IT for Insurance. One of the major cost savings for insurers involves the use of programmers. The Celent study found the average salary for a programmer in the United States is $63,331, more than double the second-highest average salary (Ireland, $28,500). With India being the popular choice for IT outsourcing, it shouldnt come as a major surprise the average programmer there makes $5,880, which is the lowest salary of the 10 countries included in the Celent survey.

Want to continue reading?
Become a Free
PropertyCasualty360 Digital Reader.

INCLUDED IN A DIGITAL MEMBERSHIP:

  • All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
  • Educational webcasts, resources from industry leaders, and informative newsletters.
  • Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.

Already have an account?


NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

PropertyCasualty360

Join PropertyCasualty360

Don’t miss crucial news and insights you need to make informed decisions for your P&C insurance business. Join PropertyCasualty360.com now!

  • Unlimited access to PropertyCasualty360.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including BenefitsPRO.com, ThinkAdvisor.com and Law.com
  • Exclusive discounts on PropertyCasualty360, National Underwriter, Claims and ALM events

Already have an account? Sign In Now
Join PropertyCasualty360

Copyright © 2024 ALM Global, LLC. All Rights Reserved.