According to Gartner, the IT spending by the Indian banking and securities firms is expected to register a growth of 13 per cent and reach Rs 417 billion by 2013. In 2012, the IT spending by Indian banks and security firms was valued at Rs 369 billion in 2012.
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The forecast by the research firm includes spending by financial institutions on internal IT services (including personnel), software, data centre technologies, devices and telecom services. IT services will be the largest segment in overall spending category at Rs 131 billion in 2013, due to a strong focus on the financial services sector by IT services providers. In 2013, IT services segment is expected to grow at 18 per cent.
Following the IT services segment, software is going to be the second fastest growing segment with an expected growth rate of 17.1. In the software segment, desktop software and enterprise resource planning, supply chain management and customer relationship management is expected to grow at 22.1 per cent and 21.7 per cent, respectively. It will be followed by internal services segment (which includes IT personnel) which is poised to witness a growth rate of 15.7 per cent.
Vittorio D?Orazio, research director at Gartner, says, ?Focus on expansion and increasing market share continues to be a top priority for banks in India. As in other emerging markets, the front office will attract more investments over the back office.?
According to D?Orazio, an increasing number of banks are replacing their legacy core banking systems by modernising both front-desk and back-office operations.
