FRAMINGHAM, Mass.-Banks are projecting a decline in IT spending and overall smaller IT budgets for 2009, according to a report by Financial Insights that suggests there may be some pricing bargains to be had by CUs on technology.
For 2009, Financial Insights is projecting that "expenses will be lowered by reducing IT staff, continuing virtualization projects, delaying planned hardware purchases, and stalling projects already underway."
According to the firm, the largest institutions, controlling more than 70% of the IT spending, will focus on acquiring troubled assets and integrating systems of merged institutions. "This will actually soften the decline in IT spending by injecting some new spend for 12 to 24 months post merger, but with a lower overall base for the merged institutions," Financial Insights said. "Smaller institutions that are well capitalized will find vendors more willing...to strike deals in 2009.
