Firms Adjust in Wake of Crisis
April 27, 2009
In response to expected increases in audits, transaction monitoring, leverage restrictions and stringent tax laws, 80 percent of sell-side firms and 66 percent of the buy side are planning to make changes to their business, according to a survey conducted by Financial Insights of Framingham, Mass.
Sixty-five percent of sell-side respondents said that they will alter their strategies by focusing on tighter business integration and exiting some business segments; 51 percent of buy-side firms plan to do the same. Information technology and business executives from more than 200 firms participated in the survey, which was sponsored by Dublin, Calif.-based Sybase.
Firms are being "increasingly selective" in making IT investments, according to the report, with areas such as risk management, Web security, infrastructure and client-related technologies among the most likely to see increased spending. Firms are focusing on improving investor perceptions by enhancing client services, said report author Sean O'Dowd, a senior analyst at Financial Insights.
