Indian financial services’ IT spending to reach INR 377 billion in 2012

Financial services industry (FSI) inIndiawill spend INR 377 billion on IT products and services in 2012, up 17.4 percent from INR 321 billion in 2011.

said the forecast includes spending by insurers on internal IT (including personnel), hardware, software, external IT services and telecommunications.

Spend on telecommunications equipment and services will reach INR 131 billion in 2012 from 113 billion in 2011.

Spending on software is expected to grow the fastest and it will reach INR 34 billion in 2012, up 28 percent from nearly 27 billion in 2011.Enterprisesoftware applications such as financial and administration packages, and customer relationship management are the main growth drivers.

“The real spend drivers will be the Indian retail bankers, although all financial services sectors including insurance and securities are increasing IT spend as they build out their infrastructures.Mobileis really top of mind for CIOs currently, and enterprise spend on devices is increasing and expected to grow by nearly 50 percent in 2012. There is also a corresponding growth in mobile network services, of nearly 30 percent,” said Derry Finkeldey, principal research analyst at Gartner.

Gartner said the focus on mobility is a global trend, but particularly pertinent to Indian financial institutions. They are all focused on leveraging the high mobile penetration to bring banking services to a wider audience.

Gartner’s 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.

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