The Indian BFSI sector will spend Rs 377 billion on IT products and services in 2012, an increase of 17.4% over 2011, according to Gartner, Inc. This forecast includes spending by insurers on internal IT (including personnel), hardware, software, external IT services and telecommunications. Telecom equipment and services represent the biggest spending category, forecasted to reach Rs 131 billion in 2012. However, spending on software is expected to grow the fastest with revenue totaling Rs 34 billion in 2012, up 28%. This is being driven by a high growth in enterprise software applications such as financial and administration packages and CRM.
“The real spend drivers will be the Indian retail bankers, although all financial services sectors including insurance and securities are increasing IT spend as they build out their infrastructures,” said Derry Finkeldey, Principal Research Analyst, Gartner. “Mobile is really top of mind for CIOs currently, and enterprise spend on devices is increasing and expected to grow by nearly 50% in 2012. There is also a corresponding growth in mobile network services, of nearly 30%.”
“This focus on mobility is a global trend, but particularly pertinent to Indian FSIs,” said Finkeldey. “They are all focused on leveraging the high mobile penetration to bring banking services to a wider audience.”