Management Approaches to improve returns on investment in IT infrastructure in the insurance industry in Sri Lanka

Abstract

This study is focused on the current level of adoption of management approaches in the insurance sector in order to increase ROI in Information Technology (IT) infrastructure and the possibility of improving ROI by increasing the level of adoption of management approaches. The individual organizational context in which such adoption takes place can be described as a dichotomous environment: one characterized by a higher level of investment but poor returns (ROI) while other is characterized by a lower level of investment and no or lower returns. It is against this backdrop that this study seeks to investigate both the strategic and non-strategic significance of adopting management approaches to improve ROI. A combination of both strategic and non-strategic management approaches would be the most ideal for the achievement of long term organizational objectives. The insurance sector in Sri Lanka has been experiencing poor ROI concerning their investments in IT infrastructure. This study has found out a stronger correaltion between ROI and IT adoption; and ROI and adoption of good management strategies.