Financial sector IT managers bemoan business short-sightedness

Poor strategic vision in IT is hindering the progression of UK financial sector organisations says Fujitsu Services, drawing on research conducted among IT managers by the Institute of Financial Services.

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Financial sector IT managers bemoan business short-sightedness

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Two-thirds of IT managers surveyed complained of difficulties in getting business backing for major infrastructure projects that would allow greater systems flexibility. Instead, say respondents, stand alone solutions such as CRM are implemented without full consideration of future business requirements or growth projections.

Mirroring trends picked up in Finextra's 2003 City Technology Strategies survey, 73% of the IFS respondents believe cost cutting has emerged as the primary driver for any IT investment within organisations, replacing business expansion or strategic growth.

To achieve the cost savings demanded, IT managers are turning to outsourcing, with 76% recommending this approach as one of the best ways to reduce the costs of running their systems, says Fujitu.

Tom Roche, director of strategy and business development for the finance sector at Fujitsu Services, says: "Fujitsu are increasingly speaking to IT managers who are becoming despondent with their management board. IT managers are reducing their strategic long term plans for IT and are instead implementing short term plans to achieve their own objectives."

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