MENA banking and securities firms to spend $12.8bn on IT
Vertical's IT spend to increase by 2.7% over 2013, according to Gartner
Banking and securities companies in the Middle East and North Africa are on track to spend around $12.8 billion on IT products and services in 2014, according to the latest forecast from Gartner.
This would see the vertical's IT spend increase by 2.7% over 2013, the research firm said.
Telecom services will be the largest segment of overall IT spending in the banking and securities market in 2014, costing the vertical $5.7 billion, Gartner said. This would see telecom spending in the vertical rise by 1.9% over 2013.
Meanwhile, software and IT services are the fastest growing areas of IT spend in the banking and securities vertical - spend on the two will grow by 10% and 6.6% respectively in 2014. Gartner said that this was mostly down to the expansion strategies of banks across the region and modernisation projects that require consulting and systems integration.
Spend on outsourcing is also showing fast growth among banking and securities companies, Gartner added.
"Banks in the Middle East are requiring skills that they have scarcity for, so they have started overcoming their traditional apprehension for external outsourcers and have engaged some key players," said Vittorio D'Orazio, research director at Gartner. "Business process outsourcing (BPO) is expected to grow 9.5% in 2014, while IT outsourcing is forecast to increase 7% from year."
"Software spending is being driven by the replacement trend from internally developed software and other older legacies to external packages, especially from the larger banks." D'Orazio added.
"Our regional CIO surveys have shown that banks in the Gulf have a very high percentage of software packages, while in Turkey they tend to have more internally-developed legacies."
Gartner is outlining key trends in the regional IT market this week at its regional Symposium/ITxpo, taking place in Dubai from Tuesday, 1 April to Thursday, 3 April.