Brokerage IT spending to take a hit

Now might be a good time to brush up on the art of keeping your pet projects alive--or a good time to at least start prioritizing. IT spending at a lot of brokerages is bound to moderate. Celent's latest report, "Brokerage IT Spending and Priorities: Finding a Way Through Lean Times," predicts that spending from 2008 to 2011 will grow just 1.3 percent vs. 8.5 percent from 2004 to 2007. Financial News Online writes that the areas where spending will be strongest include third-party software and services for middle- and back-office functions. Risk and compliance will remain high priorities, as will market clearing of derivatives and market data. Top firms will have to get smarter about what they buy. As for vendors, these will be bitter times. It's all about keeping your hand in the pie--and grabbing more when you can.  

For more:
- here's the Financial News Online article