Hedge funds to cut IT spend drastically
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Credit crunch triggers 20% IT spending fall among hedge funds
Global IT spending among hedge funds is to fall by just over 20% in the coming year, according to a report by financial services advisory Celent.
The report found that in 2009 hedge funds are expected to spend a combined $1.35 billion on IT, roughly four-fifths of 2008’s figure.
The cause is no secret; the continuing impact of the credit crunch on the financial services industry is placing operational expenditure under intense pressure.
“For the time being, cost minimisation and operational efficiency are at the top of the operational agenda," said Isabel Schauerte, the author of the report entitled ‘Hedge Fund IT Spending: The Inevitable Contraction’.
But she added that the spending dip is only temporary, and a spending spree will follow this period of contraction. Hedge fund IT spending will surpass 2007 levels by 2012, the report predicted.
Further reading
Cost-cutting conundrum
Financial services organisations are under intense pressure to cut IT costs, but many are struggling to do so without impairing future business
