Recently IDC Financial Insights announced an updated set of Worldwide IT Spending Guides that provide an analysis on the current status and projected growth of IT spending in the banking, capital markets, and insurance industries.
These reports, published bi-annually, offer an outlook on IT spending over the next five years. According to the new guides, IDC Financial Insights forecasts worldwide financial services IT spending will top $430 billion by the end of next year.
Additional highlights from the guides include:
- Banks will account for half of the worldwide total in 2014 with IT spending forecast to be $215 billion.
- Asia/Pacific, Latin America, Middle East and Africa will see growth exceeding 7% while Europe and North America remain well below 5%.
- Capital Markets firms will invest $110 billion in IT in 2014, with North America accounting for almost half of that amount.
- Insurance companies will spend $100 billion on IT worldwide in 2014.
The Worldwide Banking IT Spending Guide provides a five-year outlook on IT spending by banks, specialized banking institutions, and credit unions, and offers IT vendors key information needed to develop effective market strategies and measure growth areas. According to Karen Massey, Senior Analyst, Banking, IDC Financial Insights, “Bankers continue to be selective with IT initiatives, focusing on those that can deliver value to their clients and the organization, while also satisfying the mandate of reducing costs and improving efficiency. Expect to see projects around risk and compliance, core and infrastructure modernization, customer experience, and security, which are lifting our otherwise tempered forecasts.”
The Worldwide Insurance IT Spending Guide also provides a five-year outlook on IT spending by individual lines, life and annuity insurers, personal lines property/casualty insurers, commercial lines property/casualty insurers, and reinsurance, and provides IT vendors and international insurers with key information needed to develop effective go-to-market strategies and measure growth areas. According to Li-May Chew, Associate Research Director, IDC Financial Insights, “we project global IT investments rising to $100 billion in 2014, with a 4.0% compound annual growth rate (CAGR) over the forecast period through 2017.”
The Worldwide Capital Markets IT Spending Guide provides a five-year outlook on IT spending by brokerage firms, investment houses, commercial banks, insurance companies, and exchanges and depositories, and presents IT vendors with key information needed to develop effective market strategies and measure growth areas. According to Matt Sauer, Research Manager, Global Securities and Investment Strategies, “As is the case across the financial services industry as a whole, risk and compliance efforts are still dictating which IT projects will be getting the green light at capital markets firms in 2014. As the global regulatory environment is still a hotbed of activity, the industry will see substantial investment in areas such as trader surveillance and operational risk projects as well as initiatives to increase automation in a bid to prevent human error and misconduct.”
IDC Financial Insights’ IT Spending Guides are a benchmark tool with consistent, detailed market data on the corresponding industry and providing a profile of the IT growth opportunity segmented by technology components, solution categories, and institution types and sizes. These pivot table tools present spending forecasts according to current assumptions related to economic trends, end-user surveys. In addition, the Spending Guides provide targeted data for sales organizations with specific spending predictions and analysis correlated by institution size and type.