The financial sector will see increased IT spending over the course of 2011 with firms looking to boost performance and bring their companies up to regulatory compliance, according to Ovum, a technology analyst.
Forecasts by the independent analysis firm stated that IT spending is expected to increase 4.5 per cent in this sector for 2011. This boost is notable when compared to the small growth in IT spending of 0.3 per cent for 2010 and a decrease of 4.2 per cent seen in 2009.
Ovum analyst Daniel Mayo wrote the report that stated IT spending growth is backed by the many firms looking for improved performance and more agility. It is necessary for those businesses to make significant investments in their systems of reporting and ability to comply.
The financial industry is likely to be unstable throughout 2011, but this won’t have an effect on the need to increase IT spending and will present many chances for vendors to penetrate this market. Firms will be searching for IT tools and systems that ensure front office performance is meeting expectations, while at the same time looking for back office systems that provide automation and a hands-off set up.
After the worldwide economic crisis companies in this sector are faced with stricter regulations and need IT systems to reach compliance.
All of these conditions provide plenty of opportunity for the vendors, stated Mayo, but the departments within the financial services companies will be searching for low prices and decisions may be stalled or shelved as the market goes through changes.
Asia is a region targeted for strong growth in information technology spending over the next year. It is expected that businesses will invest more in the emerging hubs, said Mayo.
While New York and London continue to be the main hubs, banks will slowly be moving more power over to Asian locations. Senior execs and influential departments will be relocating to these areas, meaning the IT vendors need to be there with a strong presence to take advantage of the growth.Paul Holdsworth, Staff Writer, Gulf Jobs Market News