Demonetisation to push IT spending of banking and securities firms to $8.9 billion in 2017

IT spending by banking and securities firms in India will reach $8.9 billion dollars in 2017, an increase of 9.7% from 2016, according to a Gartner report. This forecast provides total enterprise IT spending for internal spending and spending data on data center systems, devices, software, IT services and telecom services.

IT services will grow the fastest at 13.8% in 2017, as firms in the banking and securities industry invest more in business processes, specifically in business process outsourcing, said the report. The focus is on outsourcing the activities to achieve operational efficiency and reduce costs in the banking and securities industry in India.

“The banking and securities industry in India saw a sea of change from earlier years in 2016 due to the sudden demonetisation announcement,” said Moutusi Sau, principal research analyst at Gartner. “Banks are increasingly working to enhance their customer facing platforms and investing in payment tools.”