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MENA banking firms to up software spending by 7.4%

Software and devices two fastest-growing areas of IT spending in 2015, says Gartner

Banking firms' spend on devices will grow by 7.1% this year, Gartner said
Banking firms' spend on devices will grow by 7.1% this year, Gartner said

Banking and securities firms in the MENA region will spend 7.4% more on software in 2015 than they did in 2014, according to a recent report from Gartner.

Overall, Gartner said that banking and securities firms in this region would spend around $12.9bn on IT products and services, a modest increase of 1% over 2014. However, the research firm said that the vertical is investing heavily in software and devices, the latter of which will see an increased spend of 7.1% in 2015.

Gartner pointed out that telecoms services, IT services and internal services were still the biggest areas of spending for banking and securities firms in the MENA region, though software and devices are both growing faster. Gartner attributed this growth to the customer-centric strategies of banks that drive customer insight projects and mobility initiatives.

"Software spending will perform better than other IT segments due to the reduction in operational budgets which will be a consequence of reduced oil revenue across these countries," said Vittorio D'Orazio, research director at Gartner.

"CRM solutions, as well as core banking software, will drive spending in this segment."

Telecom services will be the largest segment in overall IT spending in the banking and securities market at $5.5bn in 2015, Gartner said. However, the research house added that this segment is forecast to decline 1.8% compared to 2014.