IT spending by banking and securities firms in India will grow 8.6 percent in 2017 to reach Rs. 59,630 crore, estimates Gartner. The Indian banking sector has undergone a transformation. Banks are gradually lowering the number of branches and increasing capability in terms of their existing infrastructure. Despite effects of demonetization in the banking sector, banks will continue with digital transformation projects.
Demonetization is the primary reason for the slowdown in the banking and securities market in India. But the effects will be short-lived. The slowing manufacturing sector is also having an indirect effect on the banking and securities sector. IT services will grow the fastest at 13.8 percent in 2017 followed by software at 13.4 percent. Firms in the banking and securities industry are investing more in enterprise resource planning/supply chain management/customer relationship management to upgrade their existing infrastructure.