The BFSI Agenda
The annual survey of the leading CIOs of BFSI companies suggests that IT spends in the sector is likely to grow by 20 percent despite the global financial crises
By Jamsheed Gandhi
In spite of the financial crisis at play globally, the BFSI sector in the country is all set to increase IT spends by a minimum of 20 percent in 2009, as per the Infrastructure Agenda 2009 survey conducted by Network Computing, a sister publication of CRN. However clearly, the key mandate for CIOs within this vertical is the drive to achieve cost efficiency. Business process improvement, productivity and growth are on the platter, and will be derived from systems, processes and technologies deployed. Outsourcing across all categories will gain focus with an emphasis on Infrastructure Management and HR/Payroll.
Key Challenges faced by CIO/CTO
Hiring, managing and retaining qualified IT staff will take precedence over the rest. Rating this as the topmost priority for 2009, CIOs will need to find the right balance in employing domain experts who have the capability to deal with legacy systems as well as be able to imbibe new emerging technologies. Traditionally, this vertical has been spending top dollar for any and all security solutions. By ranking Information Security at the bottom, this could be a result of the maturity of the security solutions already in place.
CIOs Technology Priorities for 2009
CIOs have polled ERP and various other Enterprise Applications; Service Oriented Architecture (SOA); and Service Oriented Business Applications to hold top spot for continued investments in 2009. The case is emerging for further inter exchange of various functions into individual services, which can be integrated together and reused to create applications. Business Intelligence, Security and Infrastructure would take a back seat as CIOs grapple with optimizing what solutions and technologies are in place.
Expected change in IT spend in 2009 over 2008
In spite of the financial crisis at play globally, this vertical is all set to increase IT spend by a minimum of 20 percent in 2009. Automating technology may be put in place to balance the effect of mass layoffs while at the same time ensuring the business functions as before. CIOs polled also support the fact that if not an increase in the IT budget for 2009, organizations in this vertical, are likely to spend a similar amount as they have in 2008.
Category Investment Trends for 2009 IT Spend
Mapping the need for functioning in a cost effective manner as well as managing manpower, the segregation of money to be spent in technology in 2009 will be uniformly controlled across the various categories. Outsourcing across all categories will gain focus as almost 56 percent of the CIOs polled have voted in favor of it.
Investment Pattern for Key Technologies for 2009
Almost 46 percent of CIOs polled have budgeted for investing further into the upgrade of the technology infrastructure in place. The technology infrastructure will be the backbone which will drive the need for CIOs who have polled ERP and various other Enterprise Applications; SOA; and Service Oriented Business Applications to hold top spot for continued investments in 2009. Over the next three years, Information Security, with an emphasis on authentication and encryption will see continued investments.
Key Technology Implementation Challenges faced
Alignment of IT with business requirements is still perceived as the CIOs top most challenge. This is a long overdue effort and has been in play since over a decade. This gives substantial evidence that CIOs need to be part of the business decision making process in the Board Room. Habits are hard to change and this too is evident in this poll that states over 30 percent respondents have identified the reluctance of employees to accept new technology.
Outsourcing Plans for Key Functions
This vertical has been very selective in outsourcing its key functions. Functions that were not critical to the business were currently being outsourced. This is about to change drastically in 2009. CIOs have unanimously polled an increase in outsourcing with an emphasis on Infrastructure Management and HR/Payroll. Outsourcing of the IT Strategy which was never spoken about, but discussed in hushed tones will also see acceptance by a respectable 30 percent of the participants. |