The Indian financial services industry will spend 377 billion rupees on IT products and services in 2012, an increase of 17.4% over 2011 revenue of 321 billion rupees, according to Gartner. This forecast includes spending by insurers on internal IT (including personnel), hardware, software, external IT services and telecommunications.
Telecommunications equipment and services represents the biggest spending category, and it is forecast to reach 131 billion rupees in 2012, up from 113 billion in 2011. However, spending on software is expected to grow the fastest in 2012, with revenue totalling 34 billion rupees in 2012, up 28% from 2011 revenue of nearly 27 billion. This is being driven by a very high growth in enterprise software applications such as financial and administration packages, and customer relationship management.