Financial sector 'to boost IT spending'
Dubai, November 16, 2010
Spending on IT in the financial markets sector will experience positive growth in 2011 as companies look to improve performance and comply with new regulations, according to independent technology analyst Ovum.
According to forecasts by Ovum, the spending on IT vendors by the sector will grow by 4.5 per cent in 2011. This is significant when compared to 2010 when overall spending on IT by financial markets grew by just 0.3 per cent and 2009, when there was a 4.2 per cent decline.
Daniel Mayo, Ovum analyst and author of the new report, said that the growth will be driven by businesses striving to improve their performance and agility and a need to invest significantly in compliance and reporting systems.
“The financial markets sector as a whole will be volatile in 2011, but this will not be detrimental to IT spending and will provide significant opportunities for vendors. Businesses will be looking for IT systems that ensure their front offices are performing as well as they can, while they will want to make their back offices more automated," he explained.
“They will also be investing heavily in systems that help them comply with the barrage of new regulations brought in since the global financial crisis.”
"While all this will drive strong growth opportunities for vendors, according to Mayo, procurement departments will still be looking to drive down prices and decision making will be volatile as institutions freeze or delay projects in response to market changes."
"Vendors also need to be aware that the Asia region will continue to grow in importance for IT spending in 2011 and investment will increasingly be directed to hubs there by enterprises," he said.
"London and New York will remain the key hubs but banks will shift some of their power to the Asia region, which will become more and more influential as senior executives relocate there. For this reason, a credible presence in Asia will be critical for vendors in 2011," he added.-TradeArabia News Service