Indian Financial Services' IT Spending To Rise More Than 17 Per Cent In 2012 - Gartner

Max Skjonsberg

11 June 2012

The Indian financial services industry is expected to spend as much as Rp377 billion ($6.8 billion) in information technology in 2012 as the number of individuals requiring financial management support grows, according to a report by Gartner.

The forecast spending is a 17.4 per cent increase from the Rp321 billion recorded in 2011 and includes spending by insurers on internal IT, hardware, software, external IT services and telecommunications. Telecom equipment and services account for the highest spending category and are forecast to reach Rp131 billion this year, from from Rp113 billion in 2011.

Spending on software is likely to grow the fastest this year, with revenue totalling Rp34 billion, or 28 per cent higher from last year. Gartner says this increase is driven mostly by very high growth in enterprise software applications, such as financial and administration packages and customer relationship management.

"The real spend drivers will be the Indian retail bankers, although all financial services sectors are increasing IT spend as they build out their infrastructures. Mobile is really top of mind for chief information officers currently and spend of devices is increasing and expected to rise by almost 50 per cent in 2012," said Derry Finkeldey, principal research analyst at Gartner.

The focus on mobility is a global trend, the study added, but it is particularly high among Indian firms, which are all focused on high mobile penetration to bring banking services to a wider audience. Further information on the study can be found in the Gartner study "Forecast: Enterprise IT Spending by Vertical Industry Market, Worldwide 2010-2016, 1Q12 Update."