The ever-growing industry – IT is expected to get a revenue of Rs 377 billion or $6.8 billion on its IT products and services by the Indian Financial Service Industry. It is an increase of 17.4 % over 2011 revenue of Rs 321 billion, up Rs 377 billion in 2012, according to Gartner. This forecast includes spending on internal IT, hardware, software, external IT services and telecommunications. This spending by the Indian financial services industry most probably may increase year by year. Indian Financial services industry consists of banking, financial services such as mutual funds and insurance.
A principal research analyst at Gartner, Derry Finkledey said:
“The real spend drivers will be the Indian retail bankers, although all financial services sectors including insurance and securities are increasing IT spend as they build out their infrastructures. They are all focused on leveraging the high mobile penetration to bring banking services to a wider audience. “
It’s a pretty good area for investment. The Telecommunication sector revenue is predicted to reach Rs 131 billion this year, up from Rs 113 billion from 2011. As the CIO favor the sector pertaining to Mobiles, the spend is expected to grow up to 50 % this year, according to Derry. According to Indian Telecom Analysis, the mobile subscriber base is expected to increase at a compound annual growth rate of about 6.6% during 2011 to 2012 & 2014 to 2015.
And just not that, also the investment on software is analysed to grow at a fast pace this year with a revenue of Rs 34 billion, up 28% from 2011 revenue of nearly 27 billion. Gartner said that this is driven by a very high growth in enterprise software applications such as financial and administration packages and customer relationship management.
So the cash requirement for the IT Products & Services, and indeed the spend by Indian financial service will grow gradually year by year, to maintain its growth rate.