Spending on IT by the financial markets industry will
touch $90 billion by 2015 globally, driven by strong growth in Asia-Pacific
(AP) and a bounce-back in the hedge funds sector, according to Ovum.
The Asia-Pacific region will see some of the strongest
growth in financial markets IT spend accounting to $18 billion, as global
companies continue to transfer power to the region due to its growing economic
strength.
In China, IT spending will grow by a compound annual
growth rate (CAGR), of 8.8 percent from 2011 to 2015. Meanwhile, Hong Kong will
experience a CAGR of 8.1 percent for the same period and Singapore 7.1 percent.
Though the amounts invested will be lower, growth in all three will outstrip
the US and the UK and Ireland, which will hit CAGRs of 6 percent and 5.8
percent, respectively.
While there will be growth in nearly every major market,
the Asia-Pacific countries will be at the forefront. This is mainly due to
global companies shifting their decision-making power from New York and London
to cities such as Beijing, because of their growing economic influence,” said
Daniel Mayo, financial markets technology analyst, Ovum.
Meanwhile, AP spending on IT in the hedge funds sector
will grow a CAGR of 14 percent from 2011 to 2015. This is the strongest growth
of all the lines of business and is being driven by resurgence in the hedge
funds market as investors seeking high returns forgive the woes of 2008-09.
The global hedge funds market was badly affected by the
financial crash, with investors staying away due to its disastrous performance.
As a result, investment in IT fell significantly in 2008 and 2009.
However, the Asia Pacific market proved far more resilient and as investors
seek higher returns is set to be a major driver for industry growth in 2011.
Much of the investment in all regions and lines of
business will be made in risk management systems, as well as reporting systems
that allow financial markets companies to provide greater transparency and
comply with new industry regulations such as Basel III.
By Telecomlead.com Team
editor@telecomlead.com
