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Telecom Spending Trends in the Financial Services SectorProduct Type: Market Research ReportPublished by: Frost & Sullivan Published: June 2006 Product Code: R1-4923 Description Research Overview
This Frost & Sullivan research service titled Telecom Spending Trends in the Financial Services Sector provides an overview of the U.S. financial services sector and highlights key end-user product/service adoption as well as spending trends. The study also highlights end-user trends with regard to outsourcing of various telecom/IT functions and penetration rates for various telecom services. In this research service, Frost & Sullivan's expert analysts thoroughly examine the following markets: monetary authorities, credit intermediation, securities intermediation, as well as other financial funds and trust organizations. Market Sectors Expert Frost & Sullivan analysts thoroughly examine the following market sectors in this research:
The following technologies are covered in this research:
Financial Services Firms Seek the Aid of Telecommunications Services for Operational Efficiency and Regulatory Compliances Over the last five years, financial services firms have increased uptake of telecommunications services in order to achieve operational efficiency, business continuity, and disaster recovery. As growing numbers of customers as well as businesses opt for online financial services, network and data security become imperative for these companies. "The tangible and intangible costs associated with network downtime have forced financial institutions to seek redundancy in networks and data centers," states the analyst of this research service. "To cater to these needs, telecom vendors are offering solutions such as network security, storage/archiving services, and other managed services." Furthermore, numerous regulatory changes have affected the corporate governance and operational activities of various financial companies, since these regulations necessitate vital investments in technology. "For instance, the Patriot Act requires financial institutions to track payments as well as receipts and make them available to various law enforcement agencies," explains the analyst of this research service. "In order to comply with this prerequisite, banks have had to change their privacy policies and implement systems that help re-align operations." Similarly, the Sarbanes-Oxley Act mandates changes in financial reporting for publicly traded firms including financial institutions. These regulatory complexities are expected to improve the sales of telecom and IT solutions. Effective Marketing Initiatives and Channel Partnerships among Technology Vendors to Help Sustain Telecommunications Market The significance of advanced telecom solutions among financial firms makes them a very attractive customer segment for telecom vendors. However, this sector is highly fragmented, creating diverse technology requirements and thereby considerable demand for specific solutions. Telecom vendors can benefit substantially by initiating product development activities that help meet this demand. Continuing investments in marketing enable vendors to gain a competitive edge in the market. Furthermore, telecom carriers often depend on channel partners such as systems integrators and hardware vendors to reach out to various financial service firms. "Allocating considerable time and financial resources for channel development activities is vital for telecom carriers," notes the analyst. "Such efforts are expected to enable vendors to boost their sales revenues." Also, developing strategic partnerships with established IT companies and consultants can help telecom services providers realize better gains in the financial services market. Table of Contents
1. Executive Summary 1. Summary of Key Research Findings 2. Market Definitions 2. Financial Services Vertical Overview 1. Market Overview 2. Market Drivers Impacting Technology Spending 3. Telecom Services Provider Challenges in Targeting Financial Institutions 3. Telecom Services Usage 1. Financial Sector Telecom Services Usage 4. Telecom Services Spending Outlook 1. Telecom Services Expenditures 5. Conclusion 1. Market Outlook 2. Frost & Sullivan Awards List of Figures |
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