Meltdown in Finanacial services expected to effect IT spending

Reports today have suggested that the meltdown in the Finance sector, the sector that spends most in IT, will reshape the IT industry. It is believed that the current crisis will have an effect on both IT professionals and IT suppliers that deal with the sector both directly and indirectly.

As the financial institutes cuts its budget, IT suppliers will be met with a fall in their revenues and an increasing pressure to deliver for efficient systems as IT departments look for higher returns on their investment.

According to a report by Gartner it is anticipated that the Financial sector across Europe will spend £74bn this year on external IT this year. However, Financial services analyst firm Towergroup has suggested that there will be a dramatic drop in technology spending across the industry as the top spenders either exit the business or reduce their overall comitments to IT investments as a whole. With so many conflicting reports it is hard to believe what will and wont happen. It seems that it simply will be time that tells the story. What are your views on the issue and are you someone that works in an IT department for one of these firms? Let us know your thoughts.