IT Improvements, Converged Systems Investments Coming in 2014
The reports from Technology Business Research integrate surveys and interviews with IT executives at 201 large North American financial organizations.Large North American financial institutions will spend $73.8 billion on IT improvements across software, hardware and professional services in 2014 as firms transition investments from "run the bank" to "change the bank," according to technology market research and consulting firm Technology Business Research’s (TBR) Banking and Financial Services SourceIT report. A concurrent report from the company estimates large U.S. enterprises will spend more than $3.8 billion in the next 12 months on converged systems, which TBR defines as pre-integrated or pre-validated stacks of compute, storage and networking hardware. Back to financial institutions, the overall 2014 IT budget growth rate hovers at 2 percent, and the report noted large banking organizations are increasing investment in multichannel banking and data management to improve system performance to meet customer demand for improved service and an enhanced user experience. "IT is clearly becoming more strategic for financial services companies, helping them maintain the status quo and acting as an accelerator for strategic business shifts," TBR senior analyst Allan Krans said in a statement. "Although budget increases are modest, we see strong commitment and funding for IT projects that positively impact the customer experience occurring during the next 18 months."
The report integrates surveys and interviews with IT and business executives at 201 large North American financial organizations, representing 20 percent of the IT opportunity and mapping IT spending across software, infrastructure and professional services in 2014. Key categories detailed in the report include industry applications, back-office business applications, productivity, BI and analytics, database and middleware, systems management and security.