The banking, financial services and insurance (BFSI) sector continues to dominate information and communications technology (ICT) sector spending, accounting for 22% of all enterprise ICT spending in Australia, according to a new IDC report.
However, in a worrying sign for Australian businesses in the ICT sector, the growth rate of BFSI sector spending on ICT is expected to decline over the coming years.
According to IDC's report, titled Banking, Financial Services and Insurance ICT Market Forecast and Analysis 2011 to 2015, total BFSI spending on ICT was $9.6 billion in 2011, expected to grow to around $11.1 billion by 2015. This represents a compound annual growth rate of 3.6% between 2010 and 2015.
IDC research manager, Emilie Ditton, says the slowing growth rate is due to changing priorities in the BFSI sector.
"The banking, financial services and insurance sector is facing a more challenging period. Declining margins in the banking sector are driving a renewed focus on cost savings and productivity, [alongside] revenue growth and customer engagement."