According to analyst firm Gartner the Indian financial services industry (FSI) will spend 377bn rupees on IT products and services in 2012, an increase of 17.4 per cent over 2011.

Telecommunications equipment and services represents the biggest spending category, and it is forecast to reach 13bn rupees in 2012, up from 113 billion in 2011. However, spending on software is expected to grow the fastest in 2012, with revenue totalling 34bn rupees in 2012, up 28 per cent from 2011.

“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, “ says 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 per cent.

“This focus on mobility is a global trend, but particularly pertinent to Indian FSIs,” she continues. “They are all focused on leveraging the high mobile penetration to bring banking services to a wider audience.”