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Print Edition StoriesFriday, December 19, 2008
Inside Financial Services Technology
IT innovation: The solution to economic turmoil
By Mass High Tech staff
How is the economic crisis affecting tech companies?
A Gartner Inc. analyst recently said that financial services institutions working their way through the economic turmoil must focus on IT innovation to bring about radical change, or they need to “hibernate” to minimize costs and be ready to resurface when times are better.
Alistair Newton, a research vice president at Stamford, Conn.-based Gartner, said in a seminar that financial organizations that chose the middle ground are wasting their IT budget. “Far from being fast followers, companies in between the two options will be ditherers or laggards who waste their IT budget on incremental modernization, which will have little or no consequence for their business,” said Newton.
He said that companies hibernate by avoiding IT change until absolutely necessary, keeping their systems running with minimal investment, and building up a war chest of savings for later use. Companies that opt for innovation are looking for the big bang while linking IT investment to business metrics so they can quantify benefits.
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