As per the report, the spend on IT by the banking and security domain would grow to 8.6 per cent and reach $ 8.9 billion.
The research and advisory firm further suggested that IT services will grow visibly at 13.8 percent in 2017 followed by software at 13.4 per cent.
To upgrade their existing infrastructure, firms in the banking and securities industry are investing more in enterprise resource planning (ERP)/supply chain management (SCM)/customer relationship management (CRM).
“The Indian banking sector has undergone a transformation. Banks are gradually lowering the number of branches and increased capability in terms of their existing infrastructure,” said Moutusi Sau, Principal Research Analyst at Gartner.
“Despite effects of demonetisation in the banking sector, banks will continue with digital transformation projects,” Sau added.
“Demonetisation is the primary reason for the slowdown in the banking and securities market in India but the effects will be short-lived,” Gartner said.
“The slowing manufacturing sector is also having an indirect effect on the banking and securities sector,” it added.