IT spending in financial markets bouncing back

Good growth predicted in financial markets sector for 2011

IT spending in the financial markets sector will see a return to growth in 2011 as companies look to improve performance and comply with new regulations, according to Daniel Mayo, technology analyst for Ovum.

His comments follow the release of an Ovum report entitled, Business Trends: Financial Markets - Technology trends for financial service institutions, which suggests that spending on IT products and services in the sector will grow by 4.5 per cent in 2011.

This is significant when taking into account that the overall spend on IT in financial markets in 2010 grew by only 0.3 per cent, and declined by 4.2 per cent in 2009.

"The financial markets sector as a whole will be volatile in 2011, but this will not be detrimental to IT spending and there will be significant opportunities for vendors," Mayo added.

"Businesses will be looking for IT systems that ensure their front offices are performing as well as they can [using bespoke technology], while they will want their back offices to be more automated.

"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."

Mayo also advises vendors to develop and maintain a strong presence in Asia, as the region will become increasingly important over the next year.

He also explained that London and New York would remain the key hubs but that banks would shift some of their power to the Asia region, making it more influential as senior executives relocate there.

"For this reason, a credible presence in Asia will be critical for vendors in 2011," he concluded.