Financial services IT spending looking better in 2011

Global information technology spending could be up by 3.7% over 2010 levels according to a report out from research firm Celent today. In total financial services institutions are expected to spend in total US$363.8 billion in 2011. By contrast, the firm tracked an increase of just 2.5% growth in 2010. Based on these rates and other factors the firm is projecting total spend to hit $393 billion by 2013 (that is a 3.9% CAGR from 2011 to 2013). The report, entitled “IT Spending in Financial Services: A Global Perspective,” takes a look at IT spending across the banking, insurance, and securities and investments sectors and accounts for regions that include North America, Europe, the Asia-Pacific region, Latin America, and Africa. The folks at Celent found it interesting to note that European and North American financial institutions are neck and neck in terms of their current rates of IT spending. Together these two regions account for almost 70% of IT spending (Sadly, Latin America and Africa account for just 5.8%). That leaves the Asia-Pacific region accounting for 26.4% and also, according to Celent, represents the area with the fastest growth — spending should increase there at 6.2% in 2011 (with a CAGR of 6.2% from 2011 to 2013). "Growth rates are starting to climb across most regions. We are not completely out of the woods, but the good news is that the turnaround has begun," senior analyst Jacob Jegher said in a statement (he is specifically Senior Analyst with Celent's Banking Group and is coauthor of the report). "European institutions are still being hit particularly hard, and many of these challenges will continue in 2011. The good news is that overall growth projections are indicating a positive trend." For more information visit Celent online.