IT spending by financial services companies increased by 8% this year, but spending is set to be curtailed over the next two years.
Analyst Celent said global IT spending by financial services companies increased to $317.7bn this year, an 8% jump from 2005.
Celent said that although US economic forecasts are relatively upbeat, the growth in IT spending by financial services firms is expected to curtail starting in 2007. The global financial services community is anticipated to spend $351.2bn on IT products and services in 2008, representing a growth rate of 5.1% per annum.
Celent said one reason for the overall reduced IT spending was that financial services firms have invested heavily in IT for some years. These investments are now starting to pay off and the growth of spending in maintenance will stabilise.
The growth rate for institutions in Europe will only be 2% between 2006 and 2008. This compares with a growth rate of 11.4% in the Asia-Pacific region, said the analyst.
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