Author: Sean O'Dowd

Pivot Table
October, 2011  -  Doc # FIN230989
Number of Pages: 13
Number of Figures: 1

This IDC Financial Insights Pivot Table provides an updated forecast for the worldwide securities and investment management (S&I) industry IT spending for 2010–2015. Overall worldwide IT spending will return to growth, with a 4.8% compound annual growth rate (CAGR) over the forecast period.

The past two years have witnessed an impressive IT market rebound, even as economic fundamentals have been slow to catch up. While IT budgets were tight or slashed heavily in 2009, financial improvements for S&I firms in 2009 offered a chance to increase IT spend over 2010. The first three quarters of 2011 saw moderate growth, with regard to IT spend, but off the strong pace of 2010. Looking forward, we see the next 12 months continuing a cautiously optimistic trend of improved IT spend for S&I. External IT forecasts in this spending guide are adjusted as follows from the previous edition:

• Asia/Pacific. 2011 IT spending has been reduced by ~2%, reflecting the negative impact of the tsunami in Japan on the region and continued weak demand from Western economies for Asian-produced goods and services. Despite this more pessimistic turn, the region still has a positive overall outlook, with a 7.2% CAGR for the forecast period.
• Europe. Forecasts for Europe remain basically the same as in the previous version of this guide for 2011. The CAGR for the forecast period is 3.8%.
• North America. North American S&I firms have tightened their expenses, bringing our forecast for 2011 spend down somewhat. Our forecast for North America is less optimistic than in the previous version of this guide, with a 4.0% CAGR for the forecast period as belt tightening and industry consolidation continue.
• The rest of the world (ROW). This region includes bright spots such as Latin America and the Middle East, where initial investments in S&I infrastructure continue to be very strong. 2011 IT spend has been adjusted upward as growth in these regions continues and as healthy S&I firms from outside the region pump up investments to reach new, growing markets.

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