Boston, May 12, 2011 - A new report from Aite Group provides insight into the IT budgets, priorities, and preferences of banks around the world. Based on an Aite Group Q1 2011 survey of 80 chief information officers (CIOs) and senior information technology executives at large financial institutions across North America, the Asia-Pacific, and Europe and the Middle East, this report is intended for bank IT executives worldwide as well as the vendors that serve them.
While large banks continue to differ in their overall attitudes toward IT and business process outsourcing, buy vs. build IT decisions, and the use of Software as a Service (SaaS), their comfort with IT outsourcing is growing. Nearly half of large financial institutions (46%) favor software from vendors, while a minority (16%) prefer to build technology in-house. With IT budgets on the rise, survey respondents have identified corporate banking, consumer banking, payments, and small-business banking as the top lines of business on which to focus technology projects in the next 24 months. Growing budgets, combined with a growing acceptance of IT outsourcing, are creating fertile ground for bank-focused technology vendors.
“Banks’ reliance on third-party vendors has never been as high as it is today,” says Gwenn Bézard, research director with Aite Group and co-author of this report. “Even so, today’s reliance will most likely pale in comparison to the level it will reach in years to come. Aite Group expects large banks in particular to become leaner organizations that rely on third-party vendors for a growing share of their operational and IT needs.”
This 60-page Impact Report contains 45 figures. Clients of Aite Group's Retail and Wholesale Banking services can download the report.