Zinnov Management Consulting

IT Adoption in BFSI Sector in India
2012

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India is a fast growing IT market; BFSI vertical constitutes a significant share of the overall spending
USD billion $13.7
17.1%

FY12

FY11

Distribution of IT Spending in India, FY12
Energy 15.7% Government 15.4%

Hardware

$11.7

IT Services

$12.6
14.4%

$11.0

Manufacturing 28.8%

BFSI 11.1% Telecom 7.2% Education 1.5% Healthcare 1.0%

Software Products

$4.2
19.5%

Consumers 11.9% Others1 7.0% Retail 0.4%

$3.5

Total domestic IT market FY12 ~ USD 30.4 billion

Overall, BFSI vertical is contributing significantly to the growth of the Indian economy; its share in Indian GDP is estimated at ~8%
Source: Company Annual Reports and Press Releases; Dataquest; Primary Interviews with Stakeholders in the Indian IT Ecosystem; MOSPI; Zinnov Analysis Note:

2

The rapid diversification of the sector including Banks, NBFCs and Insurance presents huge IT opportunity Over 97,000 Scheduled Banks in India
(235) Commercial Banks (166) Co-operative Banks (69)

Unscheduled Banks

Public Sector Banks (26) Nationalized Banks (20)

Foreign Banks in India (33)

Private Sector Bank (21)

Regional Rural Banks (82)

Urban Cooperatives (53)

State Cooperatives (16)

SBI and its Associates (6)

Old private Sector Banks (14)

New Private Sector Banks (7)

NBFCs (12,409)
Registered and Regulated by RBI Loan Company Investment Company Equipment Leasing Company Exemption from RBI regulations and registration Insurance Companies Stock Exchange, Stock brokers, etc. Housing Finance Companies Not registered but regulated by RBI* Mutual