Companies to increase IT spending in next 12 months – survey
Financial executives say they want technology that allows them to process more data more quickly, cheaply and reliably, according to a Bloomberg survey published on Monday (23 May.)
The executives were asked 10 questions on key technology trends and 76% of respondents said they expected to increase information technology (IT) spending over the next 12 months. Only 17% said they will be reducing spending and 7% expected their spending to remain the same.
The survey was carried out at Bloomberg LINK’s first enterprise technology conference in New York which was attended by more than 100 chief information and technology officers from major financial services companies.
Many companies and 84% of respondents said they had increased their spending on regulatory and compliance systems in the past two years. Only 5% had reduced their spending in this area and 11% said spending remained the same.
Bloomberg did not provide comparisons with previous years, but the high proportion of executives saying they had increased or will increase their IT spending appears to reflect growing information demands from regulators as well as market pressure and the need to update software systems.
About 55% of executives said they were shifting more of their overall capital expense to managed solutions.
Interest in cloud computing technologies also rates highly among financial companies. Asked what infrastructure investment areas had yielded the greatest return on investment in the past year, 45% of respondents said cloud computing, followed by 33% for low-latency trading and 23% for complex event processing.