There have been a number of reports published estimating the technology spend on I.T. in the next year. These reports are not unusual as they tend to appear either nearing year end or as a result of regulatory change of whatever the economic condition is
at the time. In these times such reports are grasped by vendors sometimes more in hope than expectation. None the less IT spend is vitally important aspect for the financial markets and the degree of system development can indicate the confidence in the market
and the firm in preparing for the future.
As we all know regulatory change has been the prime motivator to spend on IT for years. This is clearly a no brainer for the Board to sanction the expenditure, if it means their firm can comply. Other no brainers for the Board come with endorsements from
internal/external audit that push through budgets and investment (If we can call it that) for the IT department. Whether it involves internal development or the purchase of an external system, the use of regulatory and audit requirements are easy to use prompts
for budgets.
Despite the regulatory and audit needs that have dominated expenditure for what seems, decades, One has to wonder; what about genuine business needed system developments, where the business can increase its business, revenues and profits?