Contrary to the larger banks, regional ones typically have leaner technology budgets and smaller teams. They may initially focus on deploying emerging technologies, such as analytics, cloud and mobility, into their existing systems, but industry experts say they may also expect Indian software firms to provide operational benefits through outsourcing. Indian IT firms get up to 40 percent of their revenues from clients in the banking, financial services and insurance segments, according to industry body NASSCOM.

"Regional banks are breaking the myth of being slower adopters of new technology as they now perceive technology to be the key catalyst towards becoming more innovative and high-performance companies," said Rahul Singh, president, financial services and business technologies at HCL.

"They (regional banks) will be looking for experts not in IT, but in payments, or in lending, or in reconciliations, or securities processing," said Peter Bradshaw, managing vice president, Gartner. "These banks may be looking for more of a 'one stop shop' where they can get infrastructure, software, applications and BPO all from the same vendor, provided that vendor has proven and deep domain expertise," he added.

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