Boston Consulting Group tells European bankers: Take action to renew underperforming core banking IT systems or risk years of profit-dragging inefficiency.
The report documents key findings from an IT cost benchmarking survey in which data was gathered from 21 leading banks in 10 European countries.
BCG notes that all of its survey participants currently engaged in renewing their core banking IT systems have experienced project delays, budget over-runs, quality problems, organisational roadblocks, and in some cases project failures.
In terms of overall IT cost benchmarking, the report found that average total IT spending by survey participants continued to decrease, falling by 2.2% in 2004 following a decline of 0.1% in 2003. Average IT spending for 2005 is expected to show an increase of approximately seven percent when final numbers are available.
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