Wall Street IT Budgets Holding Up

A Finextra report states that in spite of write downs and personnel cuts following the credit crunch, Wall Street firms are continuing to invest in IT - particularly risk technology. They expect budgets to increase next year, according to research released by IBM and the Securities Industry and Financial Markets Association (Sifma).

The IBM study surveyed 500 IT professionals within the financial markets industry, of which 200 were from leading Wall Street firms and a further 300 or so were from technology vendors, consultancies, infrastructure companies and other specialists .

Around a third of the 200 IT professionals from Wall Street firms said their IT budgets increased from 2007 to 2008. The majority of these also expect budgets to be the same or bigger in 2009. IBM says smaller firms are more intent on increasing spending with half expecting a larger IT budget next year, compared to just eight per cent who think budgets will shrink.

IBM says the expected increase in IT investment is being driven by an increased focus on risk management, as respondents look to safeguard against further exposure. The majority of Wall Street firms - 67% - cite risk transparency as the primary future regulatory action impacting IT.