Indian banking and securities companies will spend about Rs 469 billion on IT products and services in 2014, an increase of more than 10% over 2013 revenue of Rs 427 billion, Gartner said in a statement issued today. This forecast includes spending by financial institutions on internal IT (largely personnel), hardware, software, external IT services and telecommunications.
IT services is the largest overall spending category at almost Rs 155 billion in 2014 (33%of the entire enterprise IT market) which confirms the interest of the banking industry for IT services which is becoming a leading industry in the country.
However, software is forecast to achieve the highest growth rate amongst the top level IT spending categories – at about 16.7% in 2014, which will slow down in the following years compared to the IT services market.
“New bank licenses will be soon granted by RBI. This will trigger a new wave of IT spending across the country as RBI’s goal is to reach a higher local penetration for banking services, and this means more branches,” said Vittorio D’Orazio, Research Director at Gartner. “Front-office technologies, such as branch-related hardware and software, will be the sweet spot, as well as new channels such as mobile and ATMs/kiosks.”
