Banking firms’ IT spending in India to increase 8.6% to $8.9 bn

Banking services
IT spending by banking and securities firms in India will increase 8.6 percent in 2017 to $8.9 billion – focusing on digital transformation projects, said Gartner.

Despite the slowdown in the banking and securities market due to demonetization and slowdown in manufacturing sector, banking and security companies are investing in IT and digital transformation projects.

Gartner said IT services will grow the fastest at 13.8 percent in 2017 followed by software at 13.4 percent. Banking and securities industry is investing more in enterprise resource planning (ERP) / supply chain management (SCM) / customer relationship management (CRM) to upgrade their existing infrastructure.

“The Indian banking sector has undergone a transformation. Banks are lowering the number of branches and increasing capability in terms of their existing infrastructure,” said Moutusi Sau, principal research analyst at Gartner.