24 February 2017
Visit EBAday.com

Indian banks to raise IT spending by 10% in 2014 - Gartner

07 August 2014  |  1920 views  |  0 Source: Gartner

Indian banking and securities companies will spend 470 billion rupees on IT products and services in 2014, an increase of more than 10 percent over 2013 revenue of 426 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 almost 155 billion rupees 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.

However, internal services (the expenditure of banks for internal IT staff) is forecast to achieve the highest growth rate amongst the top level IT spending categories - at 17.5 percent in 2014.

"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 at 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 data center technology segment while business process outsourcing (BPO) and IT outsourcing (ITO) will excel across the IT services line."

Core banking systems and other back-office technologies will also be affected by this trend as IT legacies are often unable to properly manage these new channels. This explains the estimated growth of 23 percent for the vertical specific software in 2014.

Comments: (0)

Comment on this story (membership required)

Related blogs

Create a blog about this story (membership required)
visit dh.comVisit Yelloco.co.uk

Who is commenting?

A Finextra member Finextra Member Commented on: Final PSD2 SCA & C...
A Finextra member Finextra Member Commented on: Tap-n-PIN mystery

Top topics

Most viewed Most shared
EBA to relax controversial PSD2 authentication rulesEBA to relax controversial PSD2 authentica...
11768 views comments | 51 tweets | 70 linkedin
RBS to become fintech fund and high street outlet for challenger banks under HMT remedyRBS to become fintech fund and high street...
8182 views comments | 40 tweets | 33 linkedin
High rate of defaults hit P2P lending sectorHigh rate of defaults hit P2P lending sect...
6364 views comments | 17 tweets | 13 linkedin
hands typing furiouslyDecoding the Policy Impact of India's Unio...
6262 views 0 | 13 tweets | 2 linkedin
BNY Mellon seeks blockchain experts for new emerging biz and tech teamBNY Mellon seeks blockchain experts for ne...
6074 views comments | 7 tweets | 4 linkedin

Featured job

Six Figure Base + Commission + Stock Options
London

Find your next job