The securities and investment industry will formulate stronger IT governance strategies as companies are faced with the impact of economic uncertainty, according to TowerGroup.
It said firms that do not embrace electronic trading will increasingly fall by the wayside.
According to TowerGroup, 2008 will challenge IT departments as customer requirements become more complex, spending is threatened by the credit crunch, and expectations rise.
It expects firms that take orders from investors for stock to invest in technology projects ranging from enhanced electronic trading tools to systems for global risk modelling.
Without these IT initiatives, broker-dealers will be unable to provide the core services that ever-more sophisticated clients expect. "This year will challenge IT departments as requirements become more complex, spending is threatened by the credit crunch, and expectations rise," said the analyst firm.