Compliance and performance concerns will drive growth in IT spending in financial services next year across the globe, according to Ovum.
The analysis group division of London-based Datamonitor said it expects spending on IT vendors to grow 4.5% next year over 2010. That compares with 0.3% this year over last year and a 4.2% drop in 2009, Ovum analyst Daniel Mayo said.
"Businesses will be looking for IT systems that ensure their front offices are performing as well as they can, while they will want to make their back offices more automated," Mayo said in a new report. "They will also be investing heavily in systems that help them comply with the barrage of new regulations brought in since the global financial crisis."
He also said that despite "strong growth opportunities for vendors," financial institutions "will still be looking to drive down prices and decision-making will be volatile as institutions freeze or delay projects in response to market changes."