About a-team Marketing Services
The knowledge platform for the financial technology industry
The knowledge platform for the financial technology industry

A-Team Insight Blogs

Aite Group Predicts Average IT Budget Cut of 5% for 2009 for US Firms

Subscribe to our newsletter

Originally appeared in MiFID Monitor

US financial services firms will experience an average technology budget cut of 5% for 2009, according to a recent report by consulting firm Aite Group. The report, which is based on surveys of 28 senior technology executives at a cross section of US-based capital markets firms, indicates that these firms will spend roughly US$40 billion on technology in 2009, a US$2 billion cut from 2008 spending.

The firm also claims that projects may be frozen for reasons other than budgetary cuts during the first half of the year. However, Aite Group reckons that a reduction in costs will be a top technology priority over 2009. According to the report, 29% of respondents ranked cost reduction as their number one driver for IT investment.

Adam Honoré, senior analyst with Aite Group and a co-author of the report, believes that firms will have the opportunity to address items that have been sorely neglected under the auspice of effective risk management and reducing human cost. “The continued explosion of market data and asset class expansion are also sound drivers for using 2009 to fix latent issues. For the first time in many years, the expectation is not on supporting growth. Improving data quality, fixing bad business processes, getting rid of paper reporting, and improving exception handling are achievable goals for many technologists,” he explains.

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: How to optimise SaaS data management solutions

Software-as-a-Service (SaaS) data management solutions go hand-in-hand with cloud technology, delivering not only SaaS benefits of agility, a reduced on-premise footprint and access to third-party expertise, but also the fast data delivery, productivity and efficiency gains provided by the cloud. This webinar will focus on the essentials of SaaS data management, including practical guidance on...

BLOG

Beyond Licence Fees: Key Considerations for Lowering TCO in Financial Data Management

By Neil Sandle, Chief Product Officer, Alveo. New technologies can significantly reduce the total cost of ownership (TCO) for financial data management platforms, with considerations going beyond the vendor licence fee and encompassing the full scope of TCO. Understanding your data management TCO requires evaluating key factors with solution providers, including the technology stack’s quality,...

EVENT

Buy AND Build: The Future of Capital Markets Technology, London

Buy AND Build: The Future of Capital Markets Technology London on September 19th at Marriott Hotel Canary Wharf London examines the latest changes and innovations in trading technology and explores how technology is being deployed to create an edge in sell side and buy side capital markets financial institutions.

GUIDE

Regulatory Data Handbook 2019/2020 – Seventh Edition

Welcome to A-Team Group’s best read handbook, the Regulatory Data Handbook, which is now in its seventh edition and continues to grow in terms of the number of regulations covered, the detail of each regulation and the impact that all the rules and regulations will have on data and data management at your institution. This...