Indian banking & securities companies will spend 422 billion rupees on IT products and services in 2013, an increase of more than 13 percent over 2012 revenue of 373 billion rupees, according to Gartner, Inc. 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 132 billion rupees in 2013 which confirms the strong focus on the financial services sector by IT services providers, many of which are leveraging their prominent position within this domestic market.
Software is forecast to achieve the highest growth rate amongst the top level IT spending categories – at about 18 percent in 2013.
“The expansion strategy of banks is still paramount in India, as well as in other countries of the APAC region. The Reserve Bank of India is making plans to increase the penetration of banks across the country and even opening up the market to new entrants,” said Vittorio D’Orazio, research director at Gartner. “In these cases, the front office technologies for the branch will be very attractive. However, to increase their penetration in India, banks will follow the leverage your customer device trend – or LYCD. This will evolve the relationship between the bank and its customers over the mobile channel without remarkably increasing IT costs. In fact, we see the penetration rates of the smart phone devices in the triple digits range which is by far greater than any branch expansion rate.
“Core banking systems and other back-office technologies will be also affected by this trend as IT legacies are often unable to properly manage this channel.”
Further information on the banking and securities industry IT spending is available in the Gartner report: ‘Forecast: Enterprise IT Spending for the Banking and Securities Market, Worldwide, 1Q13 Update’, available at http://www.gartner.com/resId=249259. The IT spending for all industries is available in the report ‘Forecast: Enterprise IT Spending by Vertical Industry Market, Worldwide, 1Q13 Update’ at http://www.gartner.com/resId=249263. This vertical industries forecast provides total enterprise IT spending, including internal spending and multiple lines of detail for spending on hardware, software, IT services, and telecommunications for vertical industries and 43 countries within seven geographies.
About Gartner
Gartner, Inc. (NYSE: IT) is the world's leading information technology research and advisory company. Gartner delivers the technology-related insight necessary for its clients to make the right decisions, every day. From CIOs and senior IT leaders in corporations and government agencies, to business leaders in high-tech and telecom enterprises and professional services firms, to technology investors, Gartner is a valuable partner in over 13,000 distinct organizations. Through the resources of Gartner Research, Gartner Executive Programs, Gartner Consulting and Gartner Events, Gartner works with every client to research, analyze and interpret the business of IT within the context of their individual role. Founded in 1979, Gartner is headquartered in Stamford, Connecticut, USA, and has 5,500 associates, including 1,400 research analysts and consultants, and clients in 85 countries. For more information, visit www.gartner.com.
IT services is the largest overall spending category at 132 billion rupees in 2013 which confirms the strong focus on the financial services sector by IT services providers, many of which are leveraging their prominent position within this domestic market.
Software is forecast to achieve the highest growth rate amongst the top level IT spending categories – at about 18 percent in 2013.
“The expansion strategy of banks is still paramount in India, as well as in other countries of the APAC region. The Reserve Bank of India is making plans to increase the penetration of banks across the country and even opening up the market to new entrants,” said Vittorio D’Orazio, research director at Gartner. “In these cases, the front office technologies for the branch will be very attractive. However, to increase their penetration in India, banks will follow the leverage your customer device trend – or LYCD. This will evolve the relationship between the bank and its customers over the mobile channel without remarkably increasing IT costs. In fact, we see the penetration rates of the smart phone devices in the triple digits range which is by far greater than any branch expansion rate.
“Core banking systems and other back-office technologies will be also affected by this trend as IT legacies are often unable to properly manage this channel.”
Further information on the banking and securities industry IT spending is available in the Gartner report: ‘Forecast: Enterprise IT Spending for the Banking and Securities Market, Worldwide, 1Q13 Update’, available at http://www.gartner.com/resId=249259. The IT spending for all industries is available in the report ‘Forecast: Enterprise IT Spending by Vertical Industry Market, Worldwide, 1Q13 Update’ at http://www.gartner.com/resId=249263. This vertical industries forecast provides total enterprise IT spending, including internal spending and multiple lines of detail for spending on hardware, software, IT services, and telecommunications for vertical industries and 43 countries within seven geographies.
About Gartner
Gartner, Inc. (NYSE: IT) is the world's leading information technology research and advisory company. Gartner delivers the technology-related insight necessary for its clients to make the right decisions, every day. From CIOs and senior IT leaders in corporations and government agencies, to business leaders in high-tech and telecom enterprises and professional services firms, to technology investors, Gartner is a valuable partner in over 13,000 distinct organizations. Through the resources of Gartner Research, Gartner Executive Programs, Gartner Consulting and Gartner Events, Gartner works with every client to research, analyze and interpret the business of IT within the context of their individual role. Founded in 1979, Gartner is headquartered in Stamford, Connecticut, USA, and has 5,500 associates, including 1,400 research analysts and consultants, and clients in 85 countries. For more information, visit www.gartner.com.
