Global Capital Market ICT Spending 2015-2019
About Capital Market ICT Spending
Over the years, enterprises worldwide have become increasingly dependent on technology and the Internet for their day-to-day operations. This trend is expected to intensify, leading to the role of IT departments becoming vital and contributing directly to the organization’s agenda.
The capital market ICT spending crunch is slowly ending after the cataclysmic financial recession of 2008. It is predicted that ICT spending in financial markets will grow because they are moving from a silo-based trading platform toward a centralized banking system, which would improve and integrate the system. The lending and transactional divisions of capital markets, consisting of retail and institutional investment entities, are investing in financial systems to improve liquidity management to raise IT spending.
After the 2008 crisis, lenders realized the importance of due diligence in decision-making related to lending and have started utilizing IT to analyze and minimize risks. In addition, asset managers are deploying IT for diversifying funds offered to clients.
CIOs are investing in client servicing systems to improve customer experience, as they are demanding more control and visibility in their accounts. In today's challenging global economy, business opportunities and risks are constantly rising. There is a need for identifying, assessing, managing, and monitoring business opportunities and risks. Post the financial crisis of 2008, enterprises in capital markets have increased their spending on compliance risk management. They are investing in data management, data quality, data analytics, and risk modeling.
Technavio's analysts forecast the global capital market ICT spending to grow at a CAGR of 4.63% over the period 2014-2019.
Covered in this Report
This report provides an overview of the global capital market ICT spending. The report includes market segmentation by products such as hardware, software, services, and communication. The report also includes market segmentation by geography.
Technavio's report, Global Capital Market ICT Spending 2015-2019, has been prepared based on an in-depth market analysis with inputs from industry experts. The report covers the landscape of global capital market ICT spending and its growth prospects in the coming years. The report also includes profile of key vendors operating in this market.
Technavio Announces the Publication of its Research Report – ICT Spending in Global Capital Market 2015-2019
Technavio recognizes the following companies as the key players in the ICT Spending in Global Capital Market: Cognizant, CSC, Dimension Data Holdings, Fujitsu, HP and IBM
Other Prominent Vendors in the market are: Accenture, Capco, Capgemini, Datatec, Dion, EMC, Genpact, Goldman Sachs, idhasoft, Informatica, JPMorgan, KKR, Netapp, Oracle, Polaris, SAP, Symantec, TCS, TIBCO Software, T-Systems, Verizon Communications and Wipro
Commenting on the report, an analyst from Technavio’s team said: “In the US, through the Dodd-Frank Act, SEFs were set up after the financial crisis to bring about enhanced transparency and price discovery in the OTC derivatives market. The reason for this move was that the financial crisis was basically attributed to the opaqueness of the OTC market. To overcome this problem, the Dodd-Frank Act mandated a centralized clearing system for swap contracts. It also made sure that SEFs would be an integral part of the future of the swap market. This ensures that the derivatives market sets up more SEFs in their operations. The operational efficiency of a SEF depends on close coordination among clearing houses and swap participants as well as the integration of swap data repositories. Intermediaries also need to ensure that their trading protocols are SEF compatible.”
According to the report, due to the rise in several cyber-attacks and security threats over the last five years, many investment firms and brokerage houses started to spend a significant amount of time and money on IT risk management systems to identify, manage, optimize, and mitigate risk. As the global financial market has become more open and deregulated, addressing the risk faced by financial institutions across geographies, asset classes, customer segments, functional departments, and products has become the top priority for financial organizations. Failure to manage these risks can cause huge damage to organizations. In addition, consolidation, globalization, convergence, and shifting regulations have imposed countless challenges on the financial services industry.
Further, the report states that the high cost of ICT is one of the major challenges facing this market during the forecast period.
Cognizant, CSC, Dimension Data Holdings, Fujitsu, HP, IBM, Accenture, Capco, Capgemini, Datatec, Dion, EMC, Genpact, Goldman Sachs, idhasoft, Informatica, JPMorgan, KKR, Netapp, Oracle, Polaris, SAP, Symantec, TCS, TIBCO Software, T-Systems, Verizon Communications, Wipro
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