Bladewatch.com

http://www.finextra.com/fullstory.asp?id=18283

Spending on technology by banks and securities trading firms is slowing down as the effects of the credit crunch start to take hold, according to the latest survey from the Confederation of British Industry (CBI) and PricewaterhouseCoopers (PwC).

In a bleak report, the CBI says the UK’s financial services industry will shed as many as 10,000 jobs in the next three months to cut costs following the global credit crisis.

But as well as cutting jobs, firms will cut back on other investments in order to reign in costs. As a result, plans for capital investment in the year ahead are very weak, with plans for spending on IT flat, warns the CBI.

Banking has been hit particularly hard in the first three months of the year, with volumes and staffing levels plummeting. As a result banks’ investment intentions have “turned negative, even for IT, on reduced inclinations to expand capacity, reach new customers and provide new services”, says the CBI.

An interesting article, do check it out. I wonder if we might see not so much a downturn, but a change in the way we spend on IT? There will be the threat of loosing your jobs at some banks dependent on their business/liabilities, but I suspect it might be a change from investment/projects work to more support, the concept that I will spend money to save or make money, in terms of the data center, I might be prepared to spend money upgrading the data center rather than buying a new one; in terms of the server, I might try and keep the existing servers rather than refresh them. We’ll have to see, in the meantime business continues, I’m always a believer that where one door closes, another presents itself – you don’t want consultancy on new projects – how about I do your support?

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