Banking Technology Leaders Shedding the ‘DIY’ Mindset in Favour of New, Shared Service Utility Models Monday 9 March 2015 PDF Print - At least two thirds of IT budgets in global banks being spent on regulatory requirements rather than value-creating projects, according to CSC Survey - London, Thursday 9th March 2015--Despite an overwhelming recognition of the importance of information technology (IT) efficiency to competitiveness and ability to innovate within the banking sector, global corporate banking leaders reveal in a new survey from CSC (NYSE:CSC) that 67 percent of IT budgets are applied to maintaining the status quo while just 33 percent are allocated to transformative projects that can create new business value. The survey http://www.csc.com/uk/insights/119117-redress_the_balance was conducted at the end of 2014 in conjunction with Finextra with CSC, a global leader in next-generation IT services and solutions. Its goal was to gain a snapshot of financial firms’ efforts to deal with leadership challenges, structural and infrastructure change, and IT simplification as they deal with increasing demands to grow their business, comply with regulations and maintain a programme of innovation. “The results confirm the challenges banks are facing today, particularly around improving efficiency,” said Mike Steinharter, VP, Banking & Capital Markets, CSC. “Capital requirements have become more stringent, and the regulatory burden is increasing costs across all areas of financial institutions, not least IT budgets. As such, banks need to find a solution that brings increased efficiencies to maintenance and compliance activities in order to reallocate budget to projects that can create business value.” With most banks’ IT budgets flat or in decline, it is crucial that the process of ongoing maintenance and regulatory activity be evaluated in order to analyse where efficiency gains could be made and budget reallocated to “change the bank” activities. The research supports this opinion with demonstration of a growing use of managed services, utilities and partnership models. Indeed, 49 per cent of respondents believe there are opportunities for new or expanded network-centric services for the industry that are not currently being served and 32 percent believe there are further opportunities for utilities that support the large ongoing regulatory compliance initiatives in the financial sector. Thirty five percent of respondents already have some kind of utility that serves all parts of the organisation, which shows that they are embracing one of the most effective ways to achieve IT simplification and efficiency gains. But infrastructure silos (60 percent), cultural and departmental issues (54 percent), and establishment costs or costs to establish the utility (46 percent) are considered the most prominent barriers to progress in this area. For other findings or more information about the survey or to download a copy of the survey report please visit Finextra.com About CSC: Computer Sciences Corporation (CSC) is a global leader of next generation information technology (IT) services and solutions. The Company's mission is to enable superior returns on our clients’ technology investments through best-in-class industry solutions, domain expertise and global scale. CSC has approximately 72,000 employees and reported revenue of $12.6 billion for the 12 months ended January 2, 2015. For more information, visit the company's website at www.csc.com. About Finextra: Finextra is the leading independent newswire and information source for the worldwide financial technology community. Finextra covers all significant technology news in wholesale and retail banking, the capital markets and insurance. Finextra also publishes a wide range of research articles, features, white papers and case studies. For further press information, please contact: Joanne Davis External Communications Manager, CSC email@example.com 07799476532 or Ruth Armitage firstname.lastname@example.org This press release was distributed by ResponseSource Press Release Wire on behalf of C8 Consulting in the following categories: Business & Finance, Public Sector, Third Sector & Legal, Computing & Telecoms, for more information visit http://pressreleasewire.responsesource.com/about.