MENA banking firms to spend $13bn on IT in 2014
Latest Gartner report forecasts IT spending growth of 2.4% compared to 2013
MENA banking and securities firms are on pace to spend around $13.1bn on IT products and services during 2014, according to the latest report from Gartner. This will constitute a 2.4% increase over 2013’s revenue of nearly $12.8bn, Gartner said.
As ever, telecoms spending will be the largest segment in overall IT spending in the banking and securities market, reaching $5.7bn in 2014, Gartner said. This segment is forecast to increase 0.8% over 2013’s figure.
Meanwhile, software and IT services are the fastest growing segments in the market, posting 9.7% and 8.4% increases respectively in 2014, Gartner said. The research house attributed this growth to the expansion strategies of banks in the region, and to the modernisation and replacement projects of back-offices that require plenty of consulting and systems integration. Gartner added that outsourcing was also picking up speed among banks.
“Outsourcing is still very buoyant in this market which is discovering it. The Middle East and Northern Africa markets are not close to the maturity levels experienced in some mature markets, such as the US or UK, but it is growing,” said Vittorio D’Orazio, research director at Gartner.
“Business process outsourcing (BPO) continues to have a solid growth at 12.7% in 2014, with increasing focus on horizontal BPO services.”