Banking and Securities Industry in India To Grow 8.6 Percent in 2017

IT spending by banking and securities firms in India will grow 8.6 percent in 2017 to reach $8.9 billion, according to Gartner, Inc.

Analyst Take: “The Indian banking sector has undergone a transformation. Banks are gradually lowering the number of branches and increasing capability in terms of their existing infrastructure,” said Moutusi Sau, principal research analyst at Gartner. “Despite effects of demonetization in the banking sector, banks will continue with digital transformation projects.”

Analysis: Demonetization is the primary reason for the slowdown in the banking and securities market in India. But the effects will be short-lived. The slowing manufacturing sector is also having an indirect effect on the banking and securities sector.

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

Gartner clients can learn more in the report: “Forecast: Enterprise IT Spending for the Banking and Securities Market, Worldwide, 2015-2021, 1Q17 Update”.

The banking and securities industry forecast provides total enterprise IT spending for 43 countries within 11 regions. This forecast provides total enterprise IT spending for internal spending and spending data on data center systems, devices, software, IT services and telecom services.