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A look at the IT outsourcing landscape for insurers, which recently was released by Novarica, shows midsize carriers turn to external partners for more expensive project-based work and have yet to adopt the philosophy of a blended sourcing strategy.

“What that is saying to us is midsize companies are using expensive consultants to do implementations, but they are not really doing blended sourcing in the same way large companies are doing it,” says Matt Josefowicz, a director of Novarica and head of the research and consulting group’s insurance practice.

While midsize insurers are focused on application development, large insurers have a more varied approach to IT outsourcing, reflecting the way they do business today, according to Josefowicz.

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