As Strategy Meets Action unveils survey-based IT spending projections for 2012, just as one might expect, the story contains some news that doesn't feel very new and some that deserves consideration – maybe even action. Each year, SMA takes a look at IT spending trends and business directions to determine how they are reshaping business models, enabling strategies, and fueling competitive advantage.

There is optimism about IT investments. SMA research reveals a significant increase in the number of insurers that say they plan to increase budgets. At the same time, there is a decrease in the number of insurers that are holding spending steady or will decrease their budgets. Compared to 2011 projections, 6% more insurers are saying they plan bold moves and will increase spending by over 10% in 2012.

There are two consistent triggers for IT spending: the business capabilities that are needed to meet strategic goals, and the capabilities that the competitive landscape is driving insurers to address. Both are important. This is an industry in which being a fast-follower in technology adoption has worked well for many. But the faster pace of change and the revolutionary nature of the change could derail that strategy – it just might not work in a world where the forces that are shaping change are primarily coming from outside the industry.