Indian banking and securities companies will spend 15 per cent more on IT products and services at Rs 53,600 crore in 2015, according to Gartner, Inc, an IT research and advisory firm.

In 2014, the amount spent was Rs 46,600 crore. This forecast includes spending by financial institutions on internal IT (largely personnel), hardware, software, external IT services and telecommunications, Gartner said.

“IT services is the largest overall spending category at almost Rs 18,300 crore 2015 (34% of the entire enterprise IT market) which confirms the interest of the banking industry for IT services which is a well-established market and pretty mature for the Indian banking industry,” said Vittorio D’Orazio, research director at Gartner.

He added that software is forecast to achieve the highest growth rate among the top level IT spending categories – at about 19.2 per cent in 2015.

“After the first initial round of new bank licences issued by the RBI in 2014, this year will be a major turning point: in fact, the RBI released a much clearer regulatory framework that set the guidelines for the new entrants in the Indian banking market. India might see up to 6 new banks set up by the end of 2016 and up to 50 by 2020, Gartner said in a report.

“This will intensify the competition, and banks will invest more in technology in order to win market share and drive expansion. There will also be a lot of greenfield projects. Specifically, we expect an increase in IT spending correlated to branch technology, inclusive of core banking systems, and in the mobile channel space,” D’Orazio said.

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