The appeal of third-party providers will cause many banking companies to reduce IT staff during the near future, but that will result in an employment increase for financial tech vendors, including those that provide recruitment software.
A recent report from Celent, a consultancy firm, predicts that European banks will spend $18.5 billion on IT staff this year, a decrease from $18.9 billion during 2009. That number is expected to decline by another 3 percent during 2011 and and an additional 6 percent during 2012.
“It’s more expensive and less efficient to undertake development in-house rather than work with a third-party,” Axel Pierron, senior vice president of Celent, said. “It’s clear that IT budgets are still in a very uncertain phase.