Gartner Says Indian Banking & Securities Firms To Spend 470 Billion Rupees on IT In 2014

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Analysts Forecast Strong Growth in IT Services

Banking Industry Trends To Be Examined At Gartner Symposium/ITxpo, October 14-17, In Goa

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.

Further information on banking and securities industry IT spending is available in the Gartner report: Forecast: Enterprise IT Spending for the Banking and Securities Market, Worldwide, 2012-2018, 2Q14 Update’, available at http://www.gartner.com/document/2802817 and for all industries ‘Forecast: Enterprise IT Spending by Vertical Industry Market, Worldwide, 2012-2018, 2Q14 Update’, available at http://www.gartner.com/document/2801517. This vertical industries forecast provides total enterprise IT spending, including internal spending and multiple lines of detail for spending on hardware, software, IT services, and telecommunications for vertical industries and 43 countries within seven geographies.

Key trends in the banking industry can be instead retrieved from the report “Market Trends: Banking, Worldwide, 2014’, available at http://www.gartner.com/document/2646424.

Gartner analysts will also examine banking industry trends at Gartner Symposium/ITxpo 2014.

About Gartner Symposium/ITxpo

Gartner Symposium/ITxpo is the world's most important gathering of CIOs and other senior IT executives. This event delivers independent and objective content with the authority of the world's leading IT research and advisory organization, and provides access to the latest solutions from key technology providers. Gartner's annual Symposium/ITxpo events are key components of attendees' annual planning efforts. IT executives rely on these events to gain insight into how their organizations can use IT to address business challenges and improve operational efficiency.

Additional information on Gartner Symposium/ITxpo in Goa 2014, October 14-17, is available at www.gartner.com/in/symposium. Members of the media can register for the event by contacting sony.shetty@gartner.com.

Additional information from the event will be shared on Twitter at and using #GartnerSym.

Upcoming dates and locations for Gartner Symposium/ITxpo include:

September 10-12, Capetown, South Africa www.gartner.co.za

October 5-9, Orlando, Florida: www.gartner.com/us/symposium

October 14-17, Goa, India: www.gartner.com/in/symposium

October 27-30, Sao Paulo, Brazil: www.gartner.com/br/symposium

October 28-30, Tokyo, Japan: www.gartner.com/jp/symposium

November 9-13, Barcelona, Spain: www.gartner.com/eu/symposium

November 17-20, Gold Coast, Australia: www.gartner.com/au/symposium

 

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About Gartner

Gartner, Inc. (NYSE: IT) is the world's leading information technology research and advisory company. We deliver the technology-related insight necessary for our clients to make the right decisions, every day. From CIOs and senior IT leaders in corporations and government agencies, to business leaders in high-tech and telecom enterprises and professional services firms, to technology investors, we are the valuable partner to clients in over 9,000 distinct enterprises worldwide. Through the resources of Gartner Research, Gartner Executive Programs, Gartner Consulting and Gartner Events, Gartner works with every client to research, analyze and interpret the business of IT within the context of their individual role. Founded in 1979, Gartner is headquartered in Stamford, Connecticut, USA, and has 6,400 associates, including more than 1,480 research analysts and consultants, and clients in 85 countries. For more information, visit www.gartner.com.

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