The financial services industry in India is predicted to spend INR 377 billion (US$6.8 billion) in 2012 with telecommunications the largest-spending sector while software will see fastest growth, according to Gartner.
In its research note released on Thursday, Gartner said the forecasted expenditure represents a 17.4 percent year-on-year jump from 2011's INR 321 billion (US$5.8 billion). Telecommunications was identified as the sector with the highest spend at INR 131 billion (US$2.4 billion) as more companies look to invest in telecoms equipment and services. The figure is INR 18 billion (US$326 million) more than last year's INR 113 billion (US$2.1 billion), it added.
The software industry, though, is expected to be the fastest-growing at 28 percent growth with INR 34 billion (US$616 million) in expenditure this year, compared with 2011's INR 27 billion (US$490 million). Gartner said the category is driven by "very high growth" in enterprise software applications such as financial and administration packages and customer relationship management (CRM).
"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," added Derry Finkeldey, principal research analyst at Gartner.
"Mobile is really top of mind for CIOs currently, and enterprise spend on devices is increasing and expected to grow by nearly 50 percent in 2012. There is also a corresponding growth in mobile network services, of nearly 30 percent," he added.