Reuters is to shake up its information services strategy to
help it achieve annual cost savings of £440m by the end of
2005.The
electronic information group, which this week reported a record
loss of £493m and announced a further 3,000 job cuts, has been hit
by harsh trading conditions and a slump in City demand for its
information services, such as trading terminals and market data
feeds.
The
five-point strategy includes investment in content to enhance
Reuters new product lines; a move to a single technology platform
to deliver products; investment in analytic software, including
risk management tools, and building on the success of its instant
messaging service.
Reuters has already shed around 2,500 jobs in the past two years
and last year cut IT contractor rates by up to 20%. Shortly
afterwards Greg Meekings, who was appointed chief information
officer last September, said he was considering outsourcing some of
Reuters' IT services.
IT departments within the financial services sector have been hit
particularly hard by the economic downturn as firms have squeezed
technology budgets to cut costs and put new projects on hold.
Both Reuters and rival Bloomberg are keen to bolster revenues by
offering a wider range of information services, diversifying away
from their traditional desktop terminal businesses.
Reuters said that more than 225,000 financial professionals in 116
countries have been registered for its new instant messaging
service, Reuters Messaging (RM).
