Banks need IT service providers for support

The Australian Banking community’s discretionary spending may be falling off a cliff, however a focus on core banking replacement programs will see more IT work from this sector.

Banking replacement programs are eseential is ensuring existing infrastructure maintains its availability and adherence to regulatory requirements.

According to Butler local banks will target the main service providers, given the nature of the transformational programs.

“Reasons for this will include; experience; longer-term viability; risk management; and greater capital funding capabilities,” he said.

However there are a number of opportunities for local players, especially for those focusing on niche offerings, like Data#3's software asset management offering.

He told CRN, local service providers will be able to get work through their
partnership/alliance/eco-systems with vendor partners.

“There will be a greater focus on partner systems in '09, especially when servicing the local needs for the financial institutions' transformation projects,” he said.

However local players offering innovative solutions, offerings and commercial terms (SaaS, capex removal, utility pricing, value pricing and milestone payments/holidays)will also prove to be enticing for banks.