Financial services firms, accounted for 30% of the companies interviewed by KPMG. It revealed that they are the most likely businesses to outsource IT, with 58% of them likely to outsource more over the next year, compared with 44% of all companies surveyed.
I asked Tony Virdi, head of financial services and banking UK at Cognizant, which gets over 40% of its revenues come from the finance sector, what the banks are spending on?
He said this: "Two particular areas where we are seeing growth are in compliance and innovation. Over the next three to five years, financial institutions will be faced with some major compliance issues such as Dodd Frank and FATCA, and ensuring they address the capital adequacy, stress testing and market liquidity risk requirements of Basel 3. We are currently involved in a number of projects in this area, which we expect to increase steadily as international regulations continue to come into play.
We are also helping many organisations tackle the rapidly evolving retail banking market and all the accompanying process and infrastructure challenges brought by these changes. Consumer demand for digital services mean banks are battling to bring to market the most innovative offerings; mobile banking and mobile payments are two areas where we're being called upon to both consult and to deliver solutions."
For more detail in KPMG's UK IT Service Provider Performance Study click here.