|
By Laton McCartney
Global IT spending by hedge funds will drop to $1.45 billon this year, according to Celent, a New York City based research and advisory firm that provides financial institutions with business and technology strategies.
That's a drop of 20.5% over 2008, according to a new Celent report, Hedge Fund IT Spending: The Inevitable Contraction. "With uncertainty surrounding capital markets and the scarcity of credit likely to spill into 2009, a substantial contraction in IT is inevitable," the report states. "… Spending on new technology will take a back seat. Unless faced with a collapsing platform, large scale system acquisitions or replacements are expected to be postponed."
Three areas where IT spending on either new or applications will increase in 2009
according to Celent include: risk analytics, risk monitoring and control; legal and compliance; risk reporting, pricing and valuation, collateral management; liquidity risk management and performance management.
"Large scale systems acquisitions, such as OMS/EMS and accounting systems, are considered secondary in an environment where many firms are in acute survival and 'debacle avoidance' mode," the report notes.
Source: Celent
Only registered users can write comments.
Please login or register. |
