ed note

In the last economic downturn, cost cutting was rampant. Today, although companies are holding fast to their purse strings, business is showing more of a focus on value. Several reasons may account for this, including: alignment of business and IT legitimizes the costs; real needs don’t disappear in tougher times; attitudes about IT as a business enabler have strengthened; spending deemed strategic is permissible, if not encouraged; or (hopefully not) the worst hasn’t hit us yet.

Despite the recent spate of financial hurdles, companies need to achieve profitability, and regardless of what that requires specifically, all roads lead back to IT. According to an August Gartner report, the insurance sector actually is trending a bit upward despite problems at some carriers and the soft P&C market. “Looking ahead, the insurance sector demonstrates new awareness of the innovative possibilities related to IT. Innovative business goals range from wealth management initiatives in the life and disability sector to more disciplined product life cycle management in the property and casualty sector,” predicts Gartner.