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The following content is from an older version of this website, and may not display correctly.In the wake of the largest economic collapse in recent history, Wall Street firms are rethinking their approach to IT, according to a recent survey conducted by IBM and the Securities Industry and Financial Markets Association, whose membership consists of securities firms, banks and asset managers.
Half of about 250 business and Wall Street IT professionals expect to spend between 20 and 30 percent of their 2010 and 2011 IT budgets on transformational initiatives, which include stronger emphasis on outsourcing, cloud computing and mobile technologies.
The biggest driver of transformation is systemic risk management, according to more than half of the respondents.
"Having the right technology in place is more essential than ever in efforts to monitor risk across firms and ensure regulators can identify and address potential problems before they escalate," Tom Price, SIFMA managing director, said in a statement.
Besides systemic risk, other key processes the financial sector is looking to address with different technological approaches are trading and portfolio management.
The biggest obstacles to implementation of new technologies cited by survey participants were lack of IT staff and high implementation costs. To address these inhibitors, companies are increasingly looking to cloud computing and mobile technologies, "to force business-model change."
Most participants (90 percent) expected to outsource at least one of their processes.
With Wall Street increasingly looking to IT to drive change, many data center services providers are going after the financial sector, expanding data center footprints in key financial markets, such as New York, Chicago, Toronto, London and others. Trading companies are interested in hosting their applications physically close to exchange infrastructure and providers, including the largest exchanges themselves, are racing to build out data center-floor inventory to address the growing demand.
Half of about 250 business and Wall Street IT professionals expect to spend between 20 and 30 percent of their 2010 and 2011 IT budgets on transformational initiatives, which include stronger emphasis on outsourcing, cloud computing and mobile technologies.
The biggest driver of transformation is systemic risk management, according to more than half of the respondents.
"Having the right technology in place is more essential than ever in efforts to monitor risk across firms and ensure regulators can identify and address potential problems before they escalate," Tom Price, SIFMA managing director, said in a statement.
Besides systemic risk, other key processes the financial sector is looking to address with different technological approaches are trading and portfolio management.
The biggest obstacles to implementation of new technologies cited by survey participants were lack of IT staff and high implementation costs. To address these inhibitors, companies are increasingly looking to cloud computing and mobile technologies, "to force business-model change."
Most participants (90 percent) expected to outsource at least one of their processes.
With Wall Street increasingly looking to IT to drive change, many data center services providers are going after the financial sector, expanding data center footprints in key financial markets, such as New York, Chicago, Toronto, London and others. Trading companies are interested in hosting their applications physically close to exchange infrastructure and providers, including the largest exchanges themselves, are racing to build out data center-floor inventory to address the growing demand.