Bladewatch.com

Finextra

Last year saw a decline in IT spending growth, from 3.1% in 2008 to a mere 1.7% but Celent predicts a steady uptick over the next few years, with the figure reaching $55.2 billion in 2012.

Celent says 2010 will see spending on total new investments grow by a solid 7.1% compared to an 11% fall last year. The overwhelming majority of this spend will be in wholesale banking, with an increased focus placed on corporate cash management as banks look to upgrade their ageing platforms to woo additional business.

In contrast retail banking IT spending will grow just 0.5% in 2010, compared to a 1.2% rise in 2009, says the research firm. Cuts to retail banking operations and an emphasis on self-service are fuelling the trend but the pain will be short-lived, and the start of a turnaround is expected in 2011.

Another article discussing IT spending in the near future, different sectors will of course see different results, regardless focussing on the task at hand for many a CIO will be the key requirement, whether it’s answering calls within your SLA, refreshing the hardware to reduce support costs, or deploying servers within the time constraints placed upon them by the business. We need to be changing the IT spend away from support towards investment resulting in lower long term costs, delaying the investment can work out more expensive than refreshing or replacing the hardware and software where possible. I wonder if we will see any development with this in the ITIL framework in terms of chargeback/service delivery or even concepts of marginal cost – if we had out true marginal or operational cost, could IT be in the position to put together more effective business justification plans for investment projects?

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