A new report from Aite Group provides insight into the IT budgets, priorities, and preferences of banks around the world. Based on an Aite Group 1Q11 survey of 80 chief information officers (CIOs) and senior information technology executives at large financial institutions across North America, Asia-Pacific, Europe and the Middle East, this report is intended for bank IT executives worldwide as well as the vendors that serve them.
While large banks continue to differ in their overall attitudes toward IT and business process outsourcing, buy versus build IT decisions, and the use of software-as-a-service (SaaS), their comfort with IT outsourcing is growing. Nearly half of large financial institutions (46%) favour software from vendors, while a minority (16%) prefer to build technology in-house. With IT budgets on the rise, survey respondents have identified corporate banking, consumer banking, payments, and small-business banking as the top lines of business on which to focus technology projects in the next 24 months. Growing budgets, combined with a growing acceptance of IT outsourcing, are creating fertile ground for bank-focused technology vendors.
“Banks’ reliance on third-party vendors has never been as high as it is today,” said Gwenn Bézard, research director with Aite Group and co-author of this report. “Even so, today’s reliance will most likely pale in comparison to the level it will reach in years to come. Aite Group expects large banks in particular to become leaner organisations that rely on third-party vendors for a growing share of their operational and IT needs.”
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