Banking and Security Companies to spend Rs.42,200 Crore on IT in 2013

Acknowledging the significance of IT in businesses, banking and security companies are expected to invest more in IT in 2013. According to an estimate, banking and security companies in the country will spend nearly Rs.42,200 crore on IT products and services in 2013. The Rs.42,200-crore value is almost 13 per cent more than Rs.37,300 crore spend in 2012. The spending in IT includes expenditure by financial institutions on internal IT (largely personnel), hardware, software, external IT services and telecommunications.

Vittorio D'Orazio, Director, Gartner Research, said, "The expansion strategy of banks is still paramount in India, as well as in other countries of the APAC region. The Reserve Bank of India is making plans to increase the penetration of banks across the country and even opening up the market to new entrants".  

As far as software services category is concerned, it is speculated to achieve the highest growth rate amongst the top-level IT spending categories, at about 18 per cent in 2013.