June 16: Banking and securities companies in the country are expected to earmark additional amounts towards IT upgrades this year. A report brought out by research and advisory company Gartner has forecast that banks and securities firms’ IT spend will touch $8.9 billion this year, which would mean it would rise 8.6 percent.
In a bid to upgrade their existing IT infrastructure, firms in the banking and securities industry are investing more in enterprise resource planning (ERP) / supply chain management (SCM)/customer relationship management (CRM) platforms, the report said.
With branches being cut down and infrastructure capability being upscaled, the banking sector has logged on to a major transformation scenario. Though demonetization has had its impact on the sector, digital transformation sis going to be an ongoing process in the banking industry. Gartner felt that though demonetisation could be seen as the primary reason for the slowdown in the banking and securities market in India, its effects will be short-lived.
It has already been reported that the IT services sector will grow the fastest at 13.8 per cent in 2017 followed by software at 13.4 per cent. Banks are already undergoing the transformation and that explains the foreseen increase in IT spending in the sector, reports added.