IT costly for banks
(5 March 2008 – USA) A US study has found that more effective IT vendor management could save banks substantially on their IT expenditure.
The study indicated that banks could save between ten and 30 percent of their current expenditure on technology.
Currently, banks spend between six and 12 percent of their revenue on IT, indicating a potential saving of anything up to 3.6 percent of revenue through effective IT vendor management.
The study of medium sized national and regional banks found that IT vendor management is becoming increasingly important as financial institutions focus on cost reduction and regulatory compliance.
Nearly two-thirds of respondents see IT vendor management as requiring greater expertise as well as being more important and complex that non-IT vendor management.
The study was conducted by The FactPoint Group in the United States for ITM Software.
Currently, banks spend between six and 12 percent of their revenue on IT, indicating a potential saving of anything up to 3.6 percent of revenue through effective IT vendor management.
The study of medium sized national and regional banks found that IT vendor management is becoming increasingly important as financial institutions focus on cost reduction and regulatory compliance.
Nearly two-thirds of respondents see IT vendor management as requiring greater expertise as well as being more important and complex that non-IT vendor management.
The study was conducted by The FactPoint Group in the United States for ITM Software.
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