While opportunities for IT services providers will remain depressed through 2010, opportunities will exist for service providers that can demonstrate deep domain expertise, according to a report released this week from Boston-based research firm Aite Group.
“For 2010, Aite Group expects technology budgets to remain largely flat, but there are certainly areas in which firms will turn to IT services providers for assistance in getting to market and creating opportunities for vendors," said Adam Honore, research director with Aite and co-author of the report titled “IT Services Vendors in Securities and Investments: The Quest for Domain Expertise.”
"Firms must be mindful of IT service providers' domain knowledge when vetting potential partners. Service providers must demonstrate strength in this important area in order to capitalize on the scant business opportunities available in today's market environment," continued Honore.
Although technology budgets among securities and investment clients have been down roughly 5% in 2009, the allocated share to third-party service providers—frequently the first piece of the budget cut—is much lower, the report found. Providers that cannot demonstrate deep domain expertise may find themselves struggling against those that can, Aite noted, urging vendors to take advantage of the recession to boost their talent bench.
In the report, Aite Group analyzes the market position of 21 IT services vendors in the securities and investments vertical. Based on data collected by Aite Group between February and May 2009 from 21 technology vendors offering IT services to the securities and investments industry, the report provides a mapping of IT services vendors according to the scope of their IT offerings, geographic reach and depth of domain expertise.
The report maps 21 participating IT service providers in a number of areas including domain expertise. These vendors are: Cap Gemini, Cognizant, CSC, Exigen, Fiserv, HCL, Infosys, Jack Henry, L&T Infotech, Mastek, Neoris, NS Solutions, Oracle, Patni, Polaris, Sapient, SunGard, Syntel, TCS, Unisys and Wipro.
This article can also be found at SecuritiesIndustry.com.
Alexa Jaworski is senior editor of Securities Industry News, a SourceMedia publication. She can be reached at alexa.jaworski@sourcemedia.com.
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