BOSTON — Celent estimates global information technology spending by financial services institutions will reach $353.3 billion in 2009, representing a decline of 1.3% over 2008, when IT spending totaled $358 billion.
The decline represents a departure from the last two years, which saw 4.5% growth in 2008 and 6.4% growth in 2007, said the financial research and consulting firm, based here.
Celent said the most telling indicator of future spending and growth relates to investments in new IT projects. Of the total investment in IT in 2008, a whopping 71.9% still goes to maintenance. The percentage of funds dedicated to maintenance activities is still astronomical but is slowly coming down (73.7% was dedicated to maintenance in 2006.) Unfortunately, economic conditions and the financial crisis has financial institutions cutting spending on new investments. As such, the ratio of maintenance to new investments will remain relatively unchanged in 2010.
