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Investment banks were the first organisations in Britain’s financial services industry to cut their intake of IT workers after the global credit crunch. Fourth quarter figures from ReThink Recruitment show that the number of technology jobs created by the banks fell to 13,351 last year, down 18% from 16,185 in 2006. As a result, the number of ads the sector placed for IT staff fell by a third, reflecting their frozen tech budgets, or, at the least, a scaling back of IT-led growth initiatives. But the gloom was offset by investment banks’ nearest bedfellows: retail banks, insurers as well as hedge fund and fund managers all created more jobs for IT staff, the figures show. Gaining a competitive edge, responding to compliance or improving internal systems explain why, overall, yearly demand for financial IT staff has risen, despite the turmoil. Evidencing the claim, ReThink pointed to its fourth quarter figures showing that in 2007, the number of IT job adverts in financial services rose 36% on the previous year. The increase was championed by retail banks, which more than doubled their share of IT jobs advertised in the fourth quarter, from 12% in 2006 to 26% in 2007. “Retail banks, in particular, are investing heavily in e-banking and bolstering internal systems to combat online fraud,” said Jon Butterfield, ReThink’s managing director. “A lot of work is going on to try and speed up the processes needed to achieve compliance with money laundering regulations.” The second biggest advertising increase came from general insurers, which, the figures show, is now responsible for one in five of all new tech jobs created in financial services. They face pressure to improve IT systems in preparation for compliance with Solvency II and IFRS Phase II – both of which will require better data management and reporting systems. Though the smallest but perhaps most significant increase in adverts came from hedge fund managers, which are now bigger users of IT staff than conventional fund managers. “Computer-driven quant funds are constantly looking to hone the mathematical models which underpin their investment strategies. Post-credit crunch, this has become a priority issue,” Mr Butterfield said. “There are now so many hedge funds chasing a diminishing number of market anomalies that IT is becoming a vital weapon in boosting competitive advantage, so despite difficult trading conditions, hedge funds need to invest in IT more than ever.” Elsewhere in financial services, the agency said demand for compliance and risk management IT workers has risen, in response to the credit crunch and the Société Générale trading scandal, “providing some ballast to the [IT jobs] market.” Apr 29, 2008 Email this article Printer friendly page Previous Page
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