In New Delhi: The Banking, Financial Services and Insurance (BFSI) IT Services market in India is expected to grow from US$1.6 billion in 2009 to US$2.7 billion in 2013, growing at a CAGR (compound annual growth rate) of 14.2%, says Springboard Research, a leading innovator in the IT Market Research industry.
Springboards latest report, The Indian IT Services Market for the Banking, Financial Services and Insurance Vertical notes that this intensely competitive market remains fragmented between a large number of services providers.
"Although the BFSI vertical in India is maturing in terms of adoption and usage of IT, it continues to be price sensitive. Hard to please Indian CIOs are becoming as demanding as their global counterparts, consistently expecting vendors to offer a 'fresh approach'," Sanchit Vir Gogia, Senior Research Analyst for Services at Springboard Research said.
"Now, the key challenge for IT vendors moving forward will be to keep pace with end user demand for rapid innovation,"Gogia added.
Springboard observed that there is a 'great rush' to step-up customer service levels and companies in the BFSI space have been rapidly investing in IT to work towards fulfillment of this objective.
According to the research the move to adopt CRM solutions and customer focused technology is driven by the increasing need for maintaining and enhancing customer relationships. Given the critical nature of the solution, Springboard believes BI and Anti-Money Laundering (AML) solutions will have significant growth in the Indian BFSI marketplace in the next 2 to 3 years.
Indian BFSI enterprises are benefiting from the green consolidation of storage, server, and datacenter-based applications. However, the primary reason of adoption continues to be cost-benefit and not the social cause attached to it.
The report further analyses that CIOs are no longer feel insecure with the hosting approach and realise the cost related benefits of dedicated hosting over a resource sharing approach.
Springboard suggests that vendors should work on a clearly defined and achievable unique selling proposition for the overall ecosystem. "The Indian IT Services market for BFSI (and overall) is highly competitive with limited top level differentiation. Vendors must now adopt a BFSI specific template, 'productise' their service offerings to try to maximize the potential for lower price points delivering improved and sustainable margins, Phil Hassey, Vice President for Services at Springboard Research commented
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