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GOLD COAST, Australia, October 28, 2019

Gartner Forecasts Australian Banking and Securities IT Spending to Grow 5.2% in 2020

Analysts Present Latest Industry-Specific Technology Research at Gartner IT Symposium/Xpo 2019, October 28-31 on the Gold Coast, Australia

Technology spending in the banking and securities sector in Australia is expected to reach A$18.5 billion in 2020, an increase of 5.2% from 2019, according to Gartner, Inc. Behind this growth are new investments in modern business intelligence (BI), augmented analytics and robotic process automation (RPA) software.

Globally, the banking and securities industry spends the most on information technology products and services. In Australia, it is the second-largest-spending industry after communications, media and services, representing 19.2% of total enterprise IT spending.

“The banking and securities industry continues to spend in pursuit of digitalization, whether through digital business optimization or transformation,” said Neha Gupta, research director at Gartner. “The introduction of open banking in Australia is also driving new technology investments.”

By 2023, the adoption of modern BI within banking and securities organizations will outpace the adoption within other industries.

Augmented analytics will increasingly leverage machine learning (ML) and drive new use cases in the market. Customer analytics is also a key focus for the banking and securities vertical, including visualization tools that enable the bank to be relevant to individual and community needs.

The banking and securities industry will take the lead in deploying RPA, with most large banks adopting it in some form by 2023.

The earliest adopters were custom-building RPA functionality before commercial offerings became available. However, as RPA reached a tipping point in market acceptance in the early part of this decade, many more mainstream adopters began rolling out pilot projects. Even the most conservative banks are expected to begin experimenting with RPA within the next four years.

“Adoption of RPA will increase as awareness grows among business users,” said Ms. Gupta. “We expect almost all new RPA customers will be business buyers that are outside the IT organization. Major growth will come from expansion across silos, often coordinated by or with IT.”

Enterprise IT spending trends

Total enterprise IT spending in Australia is forecast to grow 4.3% to reach A$96.4 billion in 2020 and exceed A$100 billion in 2021 (see Table 1).

Table 1: Enterprise IT Spending Forecast by Vertical Industry, Australia, 2019-2021 (Billions of Australian Dollars)

Industry

2019 Spending

2019 Growth %

2020 Spending 

2020 Growth %

2021 Spending

 

2021 Growth %

Banking & Securities

17.6

1.0

18.5

5.2

19.4

4.8

Communications, Media & Services

18.0

0.3

18.5

2.6

19.3

4.3

Education

2.7

-0.5

2.8

4.2

2.9

4.1

Government

11.6

-0.1

12.4

4.5

12.9

4.2

Healthcare Providers  

2.9

0.0

3.0

4.7

3.2

4.2

Insurance

5.5

0.5

5.7

4.8

6.0

4.6

Manufacturing & Natural Resources  

17.6

0.6

18.5

5.0

19.3

4.8

Retail

5.3

-0.8

5.5

4.2

5.7

3.8

Transportation

5.5

0.0

5.6

2.4

5.8

4.2

Utilities

3.3

-0.9

3.4

4.3

3.6

3.6

Wholesale Trade

2.3

-0.7

2.5

6.4

2.6

4.13

Total Spending

92.4

0.3

96.4

4.3

100.7

4.4

Due to rounding, figures may not add up precisely to the totals shown.

Source: Gartner (October 2019)

According to Gartner, the two biggest factors currently impacting an organization’s overall IT budget and how it is spent are data and analytics requirements and cost ptimization.

With the growth of digital business, organizations have ever-increasing data storage and compute needs, which vary greatly between different vertical sectors. As the Internet of Things (IoT) grows, data will not be restricted to customer and product data, but also include data from the many sensors that make up the IoT.

Cost optimization is a key initiative in many organizations, driven by the economic situation of the organization or the industry. It usually requires initial technology and service investment to achieve longer-term savings and may include initiatives relating to automation or cloud infrastructure — or even a complete overhaul of core applications.

Gartner clients can learn more in the report “Forecast Analysis: Enterprise IT Spending Across Vertical Industries, Worldwide” and “Forecast: Enterprise IT Spending by Vertical Industry Market, Worldwide, 2017-2023, 2Q19 Update.”

About Gartner IT Symposium/Xpo

Gartner IT Symposium/Xpo is the world’s most important gathering of CIOs and senior IT executives, uniting a global community of CIOs with the tools and strategies to help them lead the next generation of IT and achieve business outcomes. More than 20,000 CIOs, senior business and IT executives worldwide will gather for the insights they need to ensure that their IT initiatives are key contributors to, and drivers of, their organization’s success. Follow news and updates from the events on Twitter using #GartnerSYM.

Upcoming dates and locations for Gartner IT Symposium/Xpo include:

November 3-7: Barcelona

November 11-14: Goa

November 12-14: Tokyo

March 2-4, 2020: Dubai

May 11-14, 2020: Toronto

About Gartner

Gartner, Inc. (NYSE: IT) is the world’s leading research and advisory company and a member of the S&P 500. We equip business leaders with indispensable insights, advice and tools to achieve their mission-critical priorities today and build the successful organizations of tomorrow.

Our unmatched combination of expert-led, practitioner-sourced and data-driven research steers clients toward the right decisions on the issues that matter most. We are a trusted advisor and an objective resource for more than 14,000 enterprises in more than 100 countries — across all major functions, in every industry and enterprise size.

To learn more about how we help decision makers fuel the future of business, visit gartner.com.

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