Finance: Stable IT Spending, Less Hiring

With all the gloom around shrinking
technology budgets in the financial sector, the news that trading firms
are likely to at least keep IT spend in line with last year is a
surprising bit of good news. Even more improbably, some areas may
actually be growing.

Tech firms Sybase and Financial Insights
took in responses from 200 investment banks, broker-dealers, fund
managers and hedge funds and found that the majority planned to keep IT
spend on a par with last year.

The old favorites, risk and compliance, are expected to see an
increase in technology spending this year. Other areas are also set to
see a slight up-tick in IT investment – market risk, security and fraud
management, enterprise SOA, server virtualization, network management,
collaboration technologies and CRM.

Sean O’Dowd, capital markets senior analyst at
Financial Insights, says: "While capital markets firms are confronted
with an extremely difficult market environment, the study’s evidence
suggests that they are diligently working to position themselves for
future success."

However, while this is good news and gives you an idea of at least
some areas where there could be job opportunities going forward, sadly
recruitment is not on the agenda yet.

The one area where firms are pulling back is hiring staff.

— Paul Clarke