BFSI mkt to grow 14.2 p.c. by 2013

NEW DELHI: The Banking, Financial Services and Insurance (BFSI) IT Services market in India is expected to grow from $1.6 billion in 2009 to US$2.7 billion in 2013, growing at a CAGR (compound annual growth rate) of 14.2 per cent, says Springboard Research, a provider in the IT Market Research industry.

Springboard’s 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’,” said Sanchit Vir Gogia, Senior Research Analyst for Services at Springboard Research. 

He added that now the key challenge for IT vendors moving forward would be to keep pace with end user demand for rapid innovation.

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. With increasing competitive pressure, it is getting harder for BFSI enterprises to ‘win and keep’ customers.

The move to adopt CRM solutions and customer focused technology is driven by the increasing need for maintaining and enhancing customer relationships.

Business Intelligence (BI) is yet another key priority for BFSI enterprises which helps to identify and capture potential customers. Organizations in India are also using high-end analytics to indentify fraud and money laundering.

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