A new study reveals that 39 per cent of financial services organisations have not invested in business technology for two years. And 32 per cent are choosing to wait until the end of the recession before they implement new IT.

The research, from MSM Software, warns that a lack of IT investment is placing businesses at risk, with 98 per cent of IT managers not convinced that their current IT systems are up to scratch, or capable of supporting the business long-term. It was based on a study entitled Strategic change in IT. The study focused on interviews with 100 IT managers (middle manager level and above) in large UK-based organisations with 250+ employees.

Thomas Coles, managing director at MSM Software, says: “While cutting back on IT investment is understandable, it is a dangerous strategy for financial organisations to pursue, as no new wave of improvements can be made. This in turn leaves them vulnerable to being overtaken by competitors and looking outdated in comparison. The recessionary environment has had an impact on many organisations’ approach to IT investment and I believe this is a major reason why doubt is being cast over the suitability of business technology.”

“It is extremely concerning that such a vast majority of IT managers believe technology is unfit for the firm. This places financial services organisations at great risk of system failure, which could introduce turmoil into the company, bringing with it huge repercussions in terms of lost sales, custom and damaged reputation,” he adds. “I urge financial services organisations to re-consider their approach to IT investment; firms must have systems in place which are robust and fit for the specific requirements of the company. This is the only way to meet long-term business objectives and ensure competitive advantage both now and when the economic environment improves.”

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