While we await new trends that will take hold this year, as always there will be a few that gained such heavy traction in the past year that you will continue to see and hear about them more than ever. One in particular that is already standing out in 2014 encompasses efforts surrounding risk and compliance, both timeless necessities in any business in today’s digital age.
Whether you are in the legal industry, finance, insurance or CPG, risk and compliance will prove to be top of mind for the next 12 months. In fact, a number of information technology (IT) budget guides have already revealed that risk and compliance efforts will continue to dictate what IT projects will be incorporated at capital market firms in 2014. The guides focus particularly on banking, capital markets and insurance.
According to a recent Business Day Online report, IT spending will top $430 billion in 2014 and at the head of the list, the IDC predicts banks will account for the biggest spend in IT infrastructure with almost half of the worldwide total for this year. Next on the list is likely to be insurance companies, set to spend $100 billion in IT in 2014.
As the economy continues to strengthen and businesses transition from getting back on their feet to actually prospering again, spending habits will endure changes as well. This year the focus will be on technology spending to support customizing a company’s offerings and increasing the chance for security and compliance.
Another development that carries over to each fiscal year, regardless of the major trends or happenings in the industry at that time is the necessity for companies to streamline business processes to increase productivity and reduce cost. By integrating an IT infrastructure into your business, these goals will become closer to a reality. Business Day Online projects global IT investments rising to $100 billion in 2014, with a 4.0 percent compound annual growth rate (CAGR) over the forecast period through 2017.
Researchers are also predicting that with the global regulatory ecosphere booming, trader surveillance and operational risk will be two prevalent areas that organizations will be shifting their spending to, to prevent inefficiencies and poor conduct. With today’s importance on transitioning to the digital spectrum, having a solid technology platform in place is by no means new territory, however, enlisting in the proper IT infrastructure will not only help to take companies to advanced levels financially, but will also improve their risk and compliance efforts internally.
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