IT Spending by Indian Banking & Securities Firms to grow 9.8 % in 2014: Gartner

According to the latest report “Forecast: Enterprise IT Spending for the Banking and Securities Market, Worldwide, 2011-2017, 3Q13 Update” by Gartner, it has been revealed that Indian banking and securities companies will spend 462 billion rupees on IT products and services in 2014, showing an increase of nearly 9.8 per cent over 2013 revenue of 421 billion rupees.
 
IT services will be the largest segment in overall spending in the banking and securities market at 149 billion rupees in 2014, due to the continuous focus on the financial services sector by IT services providers, and it forecast to grow at the second-fastest growth rate at 14.5 percent compared to 2013.
 
Moreover, software is expected to be the fastest growing segment, with 15.2-per cent growth in 2014. In the software segment, enterprise resource planning (ERP)/supply chain management (SCM)/customer relationship management (CRM) will exceed the 20-per cent growth landmark at 21.5 per cent, while desktop software follows at 19.3 per cent.
 
Vittorio D’Orazio, Research Director, Gartner, said, The expansion of the bank’s network, and increasing market share focus, remain a top priority for banks in India. In practice, across all emerging markets, banks tend to exploit the front office over the back office in their investments. In particular, we continue to see a number of requests from Indian banks regarding the modernization and legacy replacement of core banking systems, while IT spending for tablets although very tiny, is on pace to grow 351 per cent this year and will double in the next two.
 
The banking industry technology trends and strategies will be further discussed at Gartner Symposium/ITxpo 2013.