The Asia-Pacific financial markets industry is tipped to spend $US18 billion on IT by 2015, according to analyst firm Ovum.
Investment in risk management systems, as well as reporting systems that allow financial markets companies to provide greater transparency and comply with new industry regulations such as Basel III, is set to drive growth.
Globally, financial markets will spend $US90 billion by 2015, Ovum predicts.
IT spending in China is expected to grow by a compound annual growth rate (CAGR), of 8.8 per cent from 2011 to 2015, while Hong Kong will experience a CAGR of 8.1 per cent for the same period and Singapore 7.1 per cent.
“While there will be growth in nearly every major market, the Asia-Pacific countries will be at the forefront,” Ovum financial markets technology analyst, Daniel Mayo, said in a statement.
“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.”
Although the amounts invested in China, Hong Kong and Singapore will be lower, Ovum says 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.
Hedge funds key to IT spend
Spending on IT in the hedge funds sector in the Asia Pacific is predicted to grow at a CAGR of 14 per cent from 2011 to 2015 — the strongest growth of all the lines of business.
“The global hedge funds market was badly affected by the financial crash, with investors staying away due to its disastrous performance. As a result, investment in IT fell significantly in 2008 and 2009,” Mayo said.
“However, the Asia Pacific market proved far more resilient and as investors seek higher returns is set to be a major driver for industry growth in 2011.”
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