Legacy modernization and replacement dubbed top IT challenge in 2011

Legacy modernization and replacement will be the top IT challenge for the insurance industry in 2011, according to X by 2, an insurance industry technology consulting firm.
When it comes to legacy systems, insurers will face critical decisions about whether to continue to modernize old systems or replace them, the firm said in a release.
Rounding out the Top 10 issues are:

• Cloud computing: the concept of virtual applications and infrastructure will gain momentum, but IT leaders and executives should prepare for the inevitable questions from executive management about security and dependability “in the Cloud.”
• Mobile applications: agents, policyholders and insurance company employees will expect to interact with function and feature-rich mobile applications from their insurers.
• Social media and collaboration: insurance carriers should embrace, rather than resist, this inevitability and re-factor their internal architecture systems accordingly.
• Next-generation analytics’ impact on infrastructure: the technology infrastructure of many carriers, particularly the database, storage and network components, will be challenged to keep up with developments in predictive modelling and information-savvy software platforms.
• IT as revenue drivers: once at the management table, IT leadership will be expected to help drive revenue through increased processing efficiencies and effectiveness.
• Innovation: forward-thinking IT leaders will have the processes and platforms in place to lead their organizations through the innovation-as-a-competitive-advantage cycle.
• Industry and technology sustainability: organizations will increasingly lean on their business technology capabilities to provide long-term solutions that address specific IT sustainability challenges.
• Virtualization: IT divisions will need to provide support anytime, anyplace and to any device computing for their internal employees and external customers.
• Rich media: video- and audio-heavy applications and services will become the norm in 2011 and beyond, and that will put stress on business technology platforms, infrastructures and personnel.