Total Worldwide Risk IT Spending Forecast to Reach $80 Billion by 2017, According to IDC Financial Insights

FRAMINGHAM, MA, April 3, 2013 – IDC Financial Insights today announced a new report, Pivot Table: Worldwide IT Spending 2013-2017 – Worldwide Risk IT Spending Guide, 1H13 (Doc #FIN240400), that provides an updated IT forecast for worldwide risk management software, hardware, and services for 2013–2017. Overall worldwide IT spending in risk technologies and services continues to grow but at a reduced compound annual growth rate (CAGR) of 5.45%, as compared to previous forecasts. Based on the new research, total Risk IT spending is still forecast to exceed $80 billion by 2017.

Several factors contribute to this more conservative forecast rate. First, overall macroeconomic factors have damped forecasts and are contributing to lower overall IT spending across the financial services market. Second, many of the large enterprise-wide risk projects of the 2009-2012 risk-rebuild era, are now largely operational or in a mid-stage of implementation. And third, more attention and budget is clearly being assigned to initiatives that generate business productivity gains, optimize IT infrastructure, and the integration of 3rd platform technologies in front, middle, and back office operations.

According to Michael Versace, lead author of the report and IDC Financial Insights global research director, "Despite our more conservative forecasts, risk spending is still outpacing growth in overall IT spending, representing between 15% and 17% of overall IT spending on average. And many spending hot spots remain through all global regions including credit analytics, compliance and ERM in APAC region, fraud, financial crime management, and information security services and software in North America and across European firms, and others. At the same time, executives continue to look for risk technology investment value over the long term by establishing a standard for building risk management into all strategic, business IT, and operation IT initiatives, versus being reactive or bolting on initiatives after the fact."

In order to stay competitive and more risk aware, IDC Financial Insights emphasizes the importance of strengthening the analytic backbone of the risk function including financial crime management, operational control, cyber security, and critical infrastructure protection. In addition,CROs and CIOs cannot take their eyes off of regulatory compliance obligations, growing the risk management talent pool, and leveraging risk management opportunities that come from the expanded use of big data, mobile, and the capabilities.

Several significant new features have been implemented in this March 2013 update to help end-users benchmark their internal environments and vendors target business opportunities. New features include:

Synchronization – The taxonomy used to develop this spending forecast is now synchronized with all spending forecasts published by IDC. The IDC Banking, Insurance, and Capital Markets spending IT spending guides now reference the same Risk IT taxonomy.

Regionalization – Risk spending across all seven (7) major risk submarkets have been regionalized. Spending in each submarket is now reported individually for North America, Europe, Asia Pacific, and Rest of the World.

Tier Levels – Using defacto Federal Deposit Insurance Corporation (FDIC) tier structures, all spending across submarkets and regions can now be sorted by institution size (Tier 1 through Tier 4).

Sector Breakout – An additional level of granularity has been added to the pivot table to allow users to select specific sector spending. Sectors now included are Banks, Buy-side, Sell-Side, Exchanges, Insurance, Credit Unions, and Specialty Finance.

For additional information about this study, or to arrange a one-on-one briefing with Michael Versace please contact Sarah Murray at 781-378-2674 or Reports are available to qualified members of the media. For information on purchasing reports, contact; reporters should email

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IDC Financial Insights assists financial service businesses and IT leaders, as well as the suppliers who serve them, in making more effective technology decisions by providing accurate, timely, and insightful fact-based research and consulting services. Staffed by senior analysts with decades of industry experience, our global research analyzes and advises on business and technology issues facing the banking, insurance, and securities and investments industries. International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology market. IDC is a subsidiary of IDG, the world’s leading technology, media, research, and events company. For more information, please visit, email, or call 508-620-5533. Visit the IDC Financial Insights Community at