There are a lot of forces that are driving IT spending in the financial services sector. The important thing to remember is that vendors understand this pressure and are keen on making sure enterprises pay the highest dollar.
Atlanta, Georgia (PRWEB) October 20, 2011
NPI, a leading spend management consulting firm, has identified the most common areas of IT overspending for enterprises in the financial services industry. The company, which works with clients to eliminate overspending in a variety of complex categories such as IT and telecommunications, also reports that financial services is one of the fastest-growing segments of its client base.
The financial services industry continues to face increasingly complex IT requirements as a result of compliance mandates, industry consolidation, information security concerns, trends in application mobility and competitive pressure to be best-in-class with online services. To address these requirements, IT spend is increasing. According to a 2011 survey of more than 100 financial services CIOs and IT executives by Bloomberg, 76 percent of respondents plan to increase IT spending over the next year.
NPI’s client experience substantiates these findings. An estimated 80 percent of NPI’s financial services clients – which represent billions in IT spending annually – have or soon will be increasing their IT and telecom budgets. NPI’s research into current client spending and vendor pricing practices indicates that these enterprises are most at risk for overspending in the following areas:
- Cloud computing
- Enterprise license agreements
- Data center expansion
“There are a lot of forces that are driving IT spending in the financial services sector. The important thing to remember is that vendors understand this pressure and are keen on making sure enterprises pay the highest dollar. Any company that wants to counter this leverage needs to have visibility into fair market pricing and terms. Without this vendor-specific market intelligence, the risk of overspending is really high,” said Jon Winsett, CEO of NPI.
In 2011, financial services and healthcare are the top two growth sectors for NPI’s spend management services; including benchmarking, cost analytics and strategic sourcing for IT and telecom purchases. For more information on NPI’s IT and telecom spend management services, please visit http://www.npifinancial.com.
NPI is a spend management consulting firm that protects companies from overspending in specific cost categories – information technology, telecommunications, transportation and energy. Using a combination of market experts, proprietary methodologies and extensive data, NPI ensures that prices and terms are in line with best-in-class benchmarks. Reviewing more than 14,000 purchases annually, NPI provides objective oversight for billions of dollars of strategic spend for its clients. To learn more about how NPI can help your company start saving today, visit http://www.npifinancial.com or call 404-591-7500.