Product Type: Market Research Report
Published by: TowerGroup
Published: October 2007
Product Code: R301-1336Description A recent trend in European banks has been to exclude smaller vendors from the technology selection process primarily because of the vendors'
balance sheets. Although banks have always preferred large vendors, they still used smaller vendors that could provide innovation. Today, largely because of an oppressive regulatory environment, banks are unwilling to consider small vendors, perceiving that using them would increase risk. The average threshold in Europe for IT vendors is expected to be $3.5 billion
(USD) by 2009. Smaller vendors therefore must fight to win any business, and they may have to partner with larger firms to reduce the perceived risk.
Table of Contents - Report Coverage
- Background
- Ford Motor Company's River Rouge Plant
- Banking Industry Regulations
- Bank Consolidation and Brand Problems
- Exhibit 1 Number of Vendors Serving a Typical European Tier 1 Bank (2000-18P)
- The Trend to Use Big Vendors
- Decisions Based on a Vendor's Balance Sheet
- Exhibit 2 European Bank-Imposed Average Revenue Thresholds for IT Vendors (2009P)
- Exhibit 3 European Tier 1 Banks' Acceptance of IT Innovation by Bank Type (2007)
- Recommended Strategies for Small Vendors
- Summary
|
|
