Banking, finance firms to spend Rs 47,000 crore on IT this year

By: |
New Delhi | November 04, 2014 5:21 PM

IT spending by banking and financial securities firms is expected to grow by over 10 per cent to Rs 469 billion or around Rs 47,000 crore this year, research firm Gartner said today. “Indian banking and securities companies will spend 469 billion rupees on IT products and services in 2014, increase of more than 10 […]

IT spending by banking and financial securities firms is expected to grow by over 10 per cent to Rs 469 billion or around Rs 47,000 crore this year, research firm Gartner said today.

“Indian banking and securities companies will spend 469 billion rupees on IT products and services in 2014, increase of more than 10 per cent over 2013 revenue of 427 billion rupees,” Gartner said in a statement.

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

“New bank licences 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,” Gartner Research Director Vittorio D’Orazio said.

Front-office technologies, like branch-related hardware and software, will be the sweet spot as well as new channels such as mobile and ATMs/kiosks, he added.

IT services is the largest overall spending category at almost Rs 155 billion in 2014 (33 per cent 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, Gartner said.

However, software is forecast to achieve the highest growth rate amongst the top level IT spending categories at about 16.7 per cent this year, which will slow down in the following years compared to the IT services market, it added.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1RBI proposes removing cap on interest rates for micro-lenders
2IOB net soars 143% to Rs 350 cr in Q4; plans to raise Rs 2,000 cr
3RBI proposes uniform regulatory framework for microfinance sector