IT spend by financial sector to rise by 4.5%

Spending on IT in the financial services market is growing faster again

Spending on IT in the financial markets is set to grow next year, according to research from Ovum.

IT spend will rise by 4.5% in 2011, compared with a growth of just 0.3% this year, it predicted. Investments in IT will be driven by business growth requirements and compliance and reporting systems, said Daniel Mayo, Ovum analyst.

"The financial markets sector as a whole will be volatile in 2011, but this will not be detrimental to IT spending and will provide significant opportunities for suppliers. Businesses will be looking for IT systems that ensure their front offices are performing as well as they can, while they will want to make their back offices more automated," he said.

The Asia region will continue to grow in importance for IT spending in 2011 and investment will increasingly be directed to hubs there by enterprises, Mayo added.

"London and New York will remain the key hubs but banks will shift some of their power to the Asia region, which will become more influential as senior executives relocate there. For this reason, a credible presence in Asia will be critical for suppliers in 2011."

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