IT Spending Moving from CYA to SOA
A new report from Financial Insights claims that while IT spending is still dominated by concerns over regulatory compliance, such as Sarbanes-Oxley, a change in coming. Over the next two years there will be a shift toward migrating legacy architectures to SOA, and shoring up their data - through management and security projects.
A new report from Financial Insights claims that IT spending over the next few years will be driven by enterprises migrating legacy architectures to SOA, and shoring up their data - through management and security projects. The new survey reflects a shift in priorities for enterprise IT spending away from concerns about regulatory compliance, such as Sarbanes-Oxley projects.
Financial Insights concedes this transition from CYA to SOA will take some time.
"In the short term, firms are spending on implementing tools to support regulation changes that are due in the next 12 to 24 months. Not only is the regulatory/compliance pressure great in the US, with issues such as Sarbanes-Oxley and HIPPA, for example. The regulatory-driven cycle is also big worldwide, with projects such as Basel II, Reg. NMS, and MiFID in Europe.
"Capital markets IT spending growth has reached a plateau," said Damon Kovelsky, senior analyst in the Global Capital Markets Group at Financial Insights. "Firms have come to realize that the extreme growth of the 1990's was unsustainable and the negative growth of the early 2000's was just unhealthy."
The Financial Insights report, "Worldwide Global Capital Markets Technology 2006-2011 Spending Forecast and Analysis" (Doc FIN1700), examines the distribution of spending by region and company size as well as providing insight into the expected major drivers for the next five years.