As reported by Advanced Trading’s Phil Albinuspending, spending on IT by the financial markets industry will hit almost $90 billion by 2015, driven by strong growth in Asia-Pacific (AP) and a bounce-back in the hedge funds sector, predicts Ovum.
The independent technology analyst finds that the Asia-Pacific region will see some of the strongest growth in financial markets IT spend, as global companies continue to transfer power to the region due to its growing economic strength.
In China, IT spending will grow by a compound annual growth rate (CAGR), of 8.8 per cent from 2011 to 2015. Meanwhile, Hong Kong will experience a CAGR of 8.1 per cent for the same period and Singapore 7.1 per cent. Although the amounts invested will be lower, growth in all three will outstrip the US and the UK and Ireland, which will hit CAGRs of 6 per cent and 5.8 per cent respectively.
Daniel Mayo, Ovum financial markets technology analyst, comments: “While there will be growth in nearly every major market, the Asia-Pacific countries will be at the forefront. This is mainly due to global companies shifting their decision-making power from New York and London to cities such as Beijing, because of their growing economic influence.”