IT spending has always been under constant review in the financial services sector (Credit crisis to hit IT industry, www.computing.co.uk/2203450). In light of the turbulence in the market it is unlikely we will see an increase in budgets. We will see a focus on areas of IT that can deliver demonstrative value to the business.

Improvements in processes can significantly affect the all-important cost/income ratio, and those efficiencies are facilitated by IT. For example, it is anticipated by the Council of Mortgage Lenders that repossessions will increase in 2008, and this will be preceded by an increase in debt recovery.

Although there might have been investment in debt management capabilities, firms will seek to optimise existing processes through IT. In capital markets, for example, firms will try to stress test their product portfolios to comply with Pillar II and establish their position under a number of potential scenarios.

IT departments will come under pressure but where there is a tangible business value in investment, where the ROI of such an investment delivers a compelling fiscal argument, budget may be found. It will be about priorities, and risk/reward.

Mark Elkins, SAS UK