27 Oct 2011

Financial services is a particularly IT intensive industry, with investment banking being the most IT intensive within it. According to data on international investment banks, those that spend more on IT as a percentage of operating expenditure typically experience higher profit margins. Can this be attributed to these banks using IT as a competitive advantage, rather than seeing it merely as a cost centre?

IT Spend and profitability in investment banking

There is a significantly positive relationship between IT spend and profitability amongst the world?s largest investment banks

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