Analysts Forecast Strong Growth in Packaged Software
Delhi, India, 29th January 2013 —Indian banking & securities companies will spend 416 billion rupees on IT products and services in 2013, an increase of more than 12 percent over 2012 revenue of 370 billion rupees, according to Gartner, Inc. This forecast includes spending by financial institutions on internal IT (including personnel), hardware, software, external IT services and telecommunications.
Telecommunications remains the largest overall spending category at 122 billion rupees in 2013, however, due to a strong focus on the financial services sector by IT services providers, it is growing strongly and is forecast to overtake telecommunications in total size in 2014.
However, software is forecast to achieve the highest growth rate amongst the top level IT spending categories – to exceed 18 percent in 2013, with growth of 23.6 percent predicted for desktop software and 22.6 percent for enterprise resource planning (ERP)/supply chain management (SCM)/customer relationship management (CRM), with CRM and other front-office applications high on the agenda.
“Most banks see expansion and increasing market share as their main priority,” said Vittorio D’Orazio, research director at Gartner. “As in other emerging markets, the front office gets preference over the back office in major investments.”
“Modernization and legacy replacement remain major issues for many banks as the gap widens between front-office and back-office services. We see increasing adoption of packages, especially for ‘lite’ core banking systems to address modernization and replacement,” said Mr. D’Orazio.
About Gartner
Gartner, Inc. (NYSE: IT) is the world’s leading information technology research and advisory company. We deliver the technology-related insight necessary for our clients to make the right decisions, every day. From CIOs and senior IT leaders in corporations and government agencies, to business leaders in high-tech and telecom enterprises and professional services firms, to technology investors, we are the valuable partner to clients in 12,400 distinct organizations. Through the resources of Gartner Research, Gartner Executive Programs, Gartner Consulting and Gartner Events, we work with every client to research, analyze and interpret the business of IT within the context of their individual role. Founded in 1979, Gartner is headquartered in Stamford, Connecticut, U.S.A., and has 5,300 associates, including 1,280 research analysts and consultants, and clients in 85 countries. For more information, visit www.gartner.com.