Wall Street & Technology: Blog: Capital Markets Firms to Spend $41.8 Billion on IT in 2008, Aite Says by Wall Street & Technology

Capital Markets Firms to Spend $41.8 Billion on IT in 2008, Aite Says

Aite Group put out a new, optimistic IT spending report for the capital markets yesterday that, like the Wall Street & Technology IT spending survey that we released in November, predicts an increase in IT spending of just under 10% for 2008, as well as for the ensuing years through 2011. (By contrast, a more conservative Celent report anticipated only a 4% rise in spending this year, to $36.2 billion.)

According to Aite estimates, capital markets firms spent $38.1 billion on IT in 2007 and they'll spend $41.8 billion this year, $45.1 billion in 2009, $50.4 billion in 2010 and $54.9 billion in 2011.

The 13 CIOs Aite surveyed said their top business objective for 2008 IT spending is operational efficiency, followed closely by reducing costs and then compliance. Their top five IT priorities are global trading and settlement (cited by 61%), systems integration (47%), broker workstations (47%), business intelligence solutions (46%) and risk management systems (39%).

Asked about specific applications they plan to invest in, a large majority -- 69% -- said they plan to implement an enterprise data management solution this year. Along similar lines, 62% of respondents said they plan to implement an enterprise reporting solution in 2008. A little more than half (54%) plan to deploy a business intelligence solution. Just under half (46%) say they plan to implement process automation tools. Services-oriented architectures are developing deeper roots -- 46% of respondents plan to implement a SOA this year. But in spite of CEP vendor hype, only 23% anticipate adopting a complex event processing solution this year.

Interestingly, the CIOs Aite surveyed plan to hire business analysts (54% said they would increase staff in this area), project and program managers (46%), developers (46%) and systems administrators (31%) in 2008 -- good news for IT job-seekers.

Posted by Penny Crosman at 03:03 PM

This is a public forum. CMP Media and its affiliates are not responsible for and do not control what is posted herein. CMP Media makes no warranties or guarantees concerning any advice dispensed by its staff members or readers.

Community standards in this comment area do not permit hate language, excessive profanity, or other patently offensive language. Please be aware that all information posted to this comment area becomes the property of CMP Media LLC and may be edited and republished in print or electronic format as outlined in CMP Media's Terms of Service.

Important Note: This comment area is NOT intended for commercial messages or solicitations of business.

Greg MacSweeny Columns

Greg MacSweeney
In a Matter of Months, CIOs’ Agendas Turned Upside Down
Early in the summer of 2007, Wall Street was counting its good fortune. In early summer 20...

Former CIO Gavazzi Launches Risk Alert Provider

Where Are They Now? Life After Wall Street

Where Are They Now? Mitchel Lenson, Former Deutsche Bank Group CIO

Larry Tabb Columns

Larry Tabb
Clearing and Settlement Top-of-Mind for Front-Office Execs
In addition to the excitement in the U.S., the real focus is occurring in Europe, where th...

Risk Management IT Comes to the Forefront in the Wake of Subprime Credit Crisis

In a Tumultuous Economy, Wall Street Must -- and Will -- Find a New Model

Opportunities Beckon Amid Economic Turmoil

CHECK THIS OUT

Novell Real Time Linux Webcast Series
In order to succeed, companies must be able to respond quickly, deliver superior value and quality of service, and carefully manage their costs. In this series of brief webcasts, you will learn how SUSE Linux Enterprise Real Time from Novell enables organizations to respond quicker by delivering low latencies, deliver increased value with fast response times, and better manage costs.

Events

Live Events:
Accelerating Wall Street 2
October 02, 2008

Buy-Side Trading Summit 2008
November 16-18, 2008

White Papers

Level 3 Connectivity Kit
Stay ahead of the bandwidth curve. The Level 3 Connectivity Kit provides full resources to help you make informed decisions regarding your network infrastructure. Download the Data Center Networking Strategies for Financial Services Firms White Paper; Business Class Ethernet: Trends in Perspective eBook and BC/DR Best Practices for the Data-Intensive Enterprise Gartner Webcast

Surviving and Thriving in a Challenging Market
Learn how financial services firms can use customer-centric strategies and tools to maximize client value and loyalty, gain insight into new opportunities, and do more with less, counteracting market volatility.