Maintenance represented 67% of the total IT spend across the financial services industry in 1990.TowerGroup projects that this will be reduced to 55% by 2010.
Crash tactics such as supplier management, outsourcing of IT infrastructure, deferring of strategic projects and sheer attrition may yield only diminishing returns. To improve operational efficiency and grow customer revenues, banks must ensure that their investment in systems development can sustain a fairly long life. The systems must combine business processes, subject matter expertise, application functionality, and IT infrastructure in a comprehensive, robust and flexible architecture. By adopting this approach, banks can maximise customer value by providing the right balance between advanced technologies, deep product expertise and multifunctional integration.
Guillermo Kopp, vice-president of Financial Services Strategies and IT Investments at TowerGroup.
E-mail: gkopp@towergroup.com
