6th Annual Business Technology Performance Index Shows IT Spending By Asset Finance and Leasing firms Up for 6th Straight Year
Reports show that IT spending projects are pushing forward as scheduled despite current economic constraints.
30 October 2008
Capgemini, one of the world’s foremost providers of consulting, technology and outsourcing services has released its 6th Annual ELFA Business Technology Performance Index (BTPI), executed in conjunction with the Equipment Leasing and Finance Association (ELFA). This year’s report, compiled between August and October 2008, provides an up to the minute view of budget decisions made by market leading asset finance and leasing firms as related to technology initiatives. The study shows that the IT focus in the industry has shifted significantly to cost saving strategies since last year.
The new data shows that IT spending is continuing to increase, though modestly, and IT spending growth has surpassed the growth of overall operating budgets. These banks, manufacturers and independently owned companies are utilizing IT to drive down the cost of service delivery and are turning to outsourcing core IT functions, up 38 percent over 2007. This is a departure from previous years when organizations were focusing on systems replacement, new business and product generation. When asked to rank the top IT-related initiatives to undertake in the next eighteen months, business intelligence ranked second after improving process efficiency.
“The biggest change we saw from last year was that, unless faced with a burning platform, equipment finance has put large scale system replacement, which can be a risky process in the short term, on the back burner in favor of cost related initiatives.” said Steve Byrnes, principal and leader of Capgemini’s Asset Finance Practice. “Companies are focusing on business demands by executing strategies to help transform the cost infrastructure.”
Initiatives being implemented to benefit customers have focused on enabling customer self service business intelligence improvements and replacing legacy point solutions in favor of centralized customer relationship management systems. These trends will likely continue to gain momentum into 2009.
The complete BTPI report is available at: http://www.capgemini.com/resources/thoug ht_leadership/business_technology_perfor mance_index_2008/.
About Capgemini
Capgemini, one of the world’s foremost providers of consulting, technology and outsourcing services, enables its clients to transform and perform through technologies. Capgemini provides its clients with insights and capabilities that boost their freedom to achieve superior results through a unique way of working - the Collaborative Business Experience - and through a global delivery model called Rightshore®, which aims to offer the right resources in the right location at competitive cost. Present in 36 countries, Capgemini reported 2007 global revenues of EUR 8.7 billion and employs over 86,000 people worldwide. More information is available at www.capgemini.com.
Capgemini’s Financial Services Strategic Business Unit (FS SBU) brings deep industry experience, enhanced service offerings and next generation global delivery to serve the financial services industry. With a network of 15,000 professionals serving over 900 clients worldwide, the FS SBU moves businesses forward with leading services and best practices in banking, insurance, capital markets and investments. For more information please visit www.capgemini.com/financialservices.
About the Equipment Leasing & Finance Association
The Equipment Leasing and Finance Association (ELFA) is the trade association representing financial services companies and manufacturers engaged in financing the utilization and investment of/in capital goods. ELFA members are the driving force behind the growth in the $650 billion commercial equipment finance market and contribute to capital formation in the U.S. and abroad. Its over 750 members include independent and captive leasing and finance companies, banks, financial services corporations, broker/packagers and investment banks, as well as service providers. For more information, visit www.elfaonline.org
Press Contact:
Rhena Wallace; Cohn & Wolfe for Capgemini
Tel: + 1 212-537-8014
E-mail: rhena.wallace@cohnwol fe.com
