Will the current economic downturn lead to less investment by banks in technology and an end to the double-digit information technology budget increases weve seen in recent years?
TowerGroup projects that U.S. banking institutions will spend $31.4 billion, or almost $17,000 per employee, on information technology this year. This estimate is based on a broad definition of spending that includes both internal and external spending across hardware, software, and services. Internal spending includes fully loaded employment costs of staff and their managers, including associated facilities. The reality is that investment in technology has become a major necessity on two important fronts.