Overall worldwide IT spending is growing with a 5.2% compound annual growth rate (CAGR) expected over the forecast period, according to an updated forecast for worldwide bank IT spending through 2015.

However the study, the Worldwide IT Spending 2010–2015: Worldwide Banking IT Spending Guide, 1H12 Update, also found that each region is facing very different conditions as various macroeconomic factors have made an impact on the banking industry.

Although internal IT forecasts across all regions and solution areas remain unchanged from the previous version of the guide, Worldwide IT Spending 2010–2015: Worldwide Banking IT Spending Guide, 2H11 Update, external IT forecasts in this spending guide have been adjusted accordingly.

Key report updates include:

• Europe: Due to growing concerns about the future of the eurozone, forecasts for Europe have declined slightly. The CAGR for the forecast period now stands at 3.6%, compared with 4% in the previous forecast.
• North America: Forecasts for North America are a full percentage point higher than in the previous forecast. The CAGR for the forecast period is now at 3.7%, as U.S. banks emerge from the financial crisis and Canadian banks continue their strategic investments.
• Asia/Pacific: IT spending forecasts are essentially unchanged from the previous forecast for the Asia/Pacific region. Over the forecast period, spending will increase with a CAGR of 7.9%.
• The rest of the world: This region includes bright spots such as Latin America and the Middle East, where initial investments in banking infrastructure continue to be very strong. In this region, IT spend will increase 10% in the forecast period.

“The global economy will continue to flounder in 2012 as the crisis in Western Europe casts a long shadow. As a result, many banks are taking a closer look at their expense budgets as they consider new IT investments,” said Jeanne Capachin, vice president, IDC Financial Insights.

“However, there are bright spots as the Middle East remains a strong growth market for financial services technology and the adoption of public cloud services among U.S. Banks has surfaced as a way to innovate despite tight IT spending controls.

Related Stories:

• Online retailing expected to grow by 15 percent annually through 2016
• Worldwide Mobile ad revenue to hit $3.3B this year, Gartner says
• States to spend $23.6B on IT this year
• Mobile payment market headed for $5B by 2014
• IT trends reshaping spending, forecast to grow 4 percent

© 2012, TechJournal. All rights reserved.

Tags: global bank spending, IDC report