According to a latest report by IT research and advisory firm Gartner, domestic banking companies will spend as much as Rs 477,000 million on IT products and services in 2014. Meanwhile, the IT services segment is expected to rise at the third-fastest growth rate at 15.3 per cent in 2014 as compared to the previous year.
“Domestic banking and securities companies will spend Rs 477,000 million on IT products and services in 2014, an increase of 12.7 per cent over 2013 revenue of Rs 423,000 million,” says the report by Gartner. The same will aid financial institutions in expanding their branch network in order to achieve a larger market share especially after RBI released new bank licenses. Gartner expects about 2,000 new branches in the country by the end of 2014. So much so that banks will increasingly spend on internal IT services, software, data centre technologies, devices and telecom services.
Meanwhile, strictly speaking, IT services will be the largest segment in overall spending in the domestic banking and securities companies at Rs 149,000 million. Of these, the internal services (including IT personnel) segment is expected to be the fastest in terms of growth at 21.6 per cent in 2014. Closely following will be the software segment with 19.2 per cent growth.