Indian banking and securities companies will spend 462 billion rupees (EUR5.5 billion) on IT products and services in 2014, an increase of nearly 9.8 percent over 2013 revenue of 421 billion rupees, according to Gartner
IT services will be the largest segment in overall spending at 149 billion rupees (EUR1.8 billion) in 2014, with software tipped as the fastest growing segment, with 15.2% growth in 2014.
In the software segment, enterprise resource planning, supply chain management, and customer relationship management (CRM) will exceed the 20% growth landmark at 21.5%, while desktop software follows at 19.3%.
Internal services, including IT personnel, is projected to be the third-fastest growing segment at 14.3% in 2014, largely due to the expansion strategies of banks across the country, especially in rural areas.
Investment in core banking systems and tablet-based computing is also expected to show strong growth, says Vittorio D'Orazio, research director at Gartner: "We continue to see a number of requests from Indian banks regarding the modernisation and legacy replacement of core banking systems, while IT spending for tablets although very tiny, is on pace to grow 351% this year and will double in the next two."