Boston, MA, USA
April 22, 2008

Brokerage IT Spending and Priorities: Finding a Way Through Lean Times

Table of Contents

Return to report Abstract

Executive Summary 03
Introduction 05
General Factors Influencing Brokerage IT Planning 06
  Definition of Brokerage 06
  Definition of IT Spending 06
  Definition of IT as a Strategy 07
  Brokerage IT Planning and Functions 07
  Brokerage IT as High Fixed Costs 08
Internal Factors: Size and Business Focus 09
  Size Factor 09
External Factors: Regional and Economic 11
  Regional Factors 11
  Economic Factors 13
Long-Term: Brokerage IT Priorities 14
  Overall Strategic Priorities 14
  By Division: Front/Middle/Back Office 14
  Front Office Trends 16
  Back and Middle Office Trends 17
  By Region: North America vs. Europe 17
  By Maturity: Maintenance vs. Growth 21
Short-Term: The Changing Environment 24
  The Credit Crisis and Its Aftermath 24
  Economic Downturns and IT Spending 25
  IT Planning and the Economy 28
Short-Term Shifts in IT Priorities 29
  Challenging Conditions 29
  Shifts by Firm, Size, Region, and Business Areas 29
  Front, Middle, and Back Office Shifting Priorities 33
How to Respond to Shifting Priorities 37
  Suggestions for Vendor Positioning 37
  Suggestions for Vendors Based on Client Base 38
  Vendor Opportunities 39
Conclusions 40
 

About Celent

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally experienced analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is part of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

New York - Dana Lautin
dlautin@celent.com
Tel.: +1 646 364 8254

Paris - Muriel de Munck
mdemunck@celent.com
Tel.: +33 1 42 61 06 88

Tokyo - KyongSun Kong
kkong@celent.com
Tel.: +81 3 3596 0020