Asia-Pacific Banks Will Invest in Technology Despite Crisis says Report
Financial Insights has released a report entitled ‘Asian Banks Still Prepared to Invest in Technology Despite Crisis’. This report is based on a survey conducted in the Asia-Pacific region as the crisis in the financial industry unfolded, and as bank executives assessed the impact of the crisis on their institutions. The survey, involving nearly 70 CIOs and senior IT decision-makers of top banks, highlights how banks in the region are still going to focus on investments in technology despite the ongoing crisis in the financial services industry. A clear majority of Asia-Pacific bank CIOs expect IT investment budgets to grow in 2009. The report notes that an increasing number of projects relying on the synergy of multiple technology and business areas have been put on hold. With lines of business taking on a defensive stance, the momentum to think ‘long-term, enterprise-wide and strategic’ has, to some extent, been stalled. Technology vendors have responded to the crisis by meeting the cost management agenda of their clients. This can be seen in changes to how contracts are structured. Services are converting headcount-linked contracts to fixed-price contracts. Contract payments are also being staggered through a longer time horizon.