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Global banks may cut CY12 IT budget by 15-30%: Sources
August, 18th 2011

Gloom for the already depressed market is not over yet. There are some more bad news in store as global banks are planning to review their IT budget and may even downsize it. Global banks are likely to cut their IT budgets by 15-30% in CY12, reports CNBC-TV18 quoting sources.

It is learnt that three global banks including JP Morgan, Goldman Sachs and Citibank may review their CY12 IT budget and the final budget will be finalised by December-end. Sources add that Goldman Sachs is likely to have placed a USD 400 million Infrastructure Management Services (IMS) deal on hold.

Select vendors have already been informed of the budget cuts but banks have not yet sought any price discounts, sources add. However, JP Morgan clarified that it regularly reviews and evaluates IT spends on business priorities and performance. We are unable to comment on any rumoured reductions, JP Morgan said.

Goldman Sachs has declined to comment while Citibank is yet to respond to a CNBC-TV18 query.

 
 
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