Banking & Securities to spend Rs 47,000 crore on ICT

Indian banking and securities companies will spend Rs 47,000 crore on ICT products and services in 2014, an increase of more than 10 percent over 2013 revenue of Rs 42,600 crore according to Gartner.

This forecast includes spending by financial institutions on internal ICT (largely personnel), hardware, software, external IT services and telecommunications.

IT services is the largest overall spending category at almost Rs 15,500 crore in 2014 which confirms the strong focus on the banking industry by IT services providers, many of which are leveraging their prominent international exposure within this domestic market.

“The expansion strategy of banks is entering its peak in India with the release of two new bank licenses granted by the Reserve Bank of India (RBI) to IDFC and Bandhan Financial Services. There are another two dozen financial institutions still waiting for the same grant,” said Vittorio D’Orazio, research director, Gartner.

“The RBI will grant the license to those banks willing to penetrate the rural territory as RBI wishes to increase the bank penetration across the country. This opens opportunities for front-office technologies, such as branch-related hardware and software, but also for new intangible channels such as mobile and the internet. On the other side, we expect network equipment and storage to grow quite a bit in the datacenter technology segment while BPO and ITO will excel across the IT services line,” added D’Orazio.

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