IT budgets will rise in 2006 as priorities shift from cost-cutting to driving revenue and business investment.
U.S. investment firms are ramping up technology investments following years of sluggish growth, according to research released Monday by research firm TowerGroup.
Within securities and capital markets, TowerGroup projects IT budgets to rise in 2006, with priorities shifting from cost-cutting to driving revenue and business investment. The growing hedge fund sector and continuing activity in the derivatives market will demand significant investment from institutional brokerage firms.
Investment-management firms will make their first large-scale core technology investments since the late 1990s. As the industry seeks to rebuild client trust following the mutual-fund trading scandals two years ago, its focus will turn to alternative products, adding nontraditional securities to traditional portfolios, and taking their businesses global.
In retail brokerage and investing, firms will be buoyed by baby boomers' increased longevity, rising levels of wealth concentration, and the shift of retirement responsibility onto the individual. Savvy retail firms will build greater flexibility into their core technology architectures, allowing them to respond more nimbly to an array of different kinds of investors--with the objective of customer retention and increased productivity of financial advisers.
5 Top Federal Initiatives For 2015As InformationWeek Government readers were busy firming up their fiscal year 2015 budgets, we asked them to rate more than 30 IT initiatives in terms of importance and current leadership focus. No surprise, among more than 30 options, security is No. 1. After that, things get less predictable.
Top IT Trends to Watch in Financial ServicesIT pros at banks, investment houses, insurance companies, and other financial services organizations are focused on a range of issues, from peer-to-peer lending to cybersecurity to performance, agility, and compliance. It all matters.
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