With the unemployment rate rising, the financial bailout program getting worked out and the stimulus bill still in debate with the US Senate we have to wonder where the silver lining is. However there is hope and one global industry that can benefit from this crisis is the IT (Information Technology) sector.
Let’s review a few facts:
- Under the $700 billion bailout program, enacted in early October, the government has pledged to inject $250 billion into banks…
- The Federal Deposit Insurance Corporation (FDIC) and the United Kingdom’s Financial Services Authority (FSA) signed a memorandum of understanding (MOU) on June 25, 2008, providing for increased information-sharing and coordinated regulatory efforts to address future emergency situations…
- According to a report published by Jones Day: “During 2008, 25 banks with $373.6 billion in total assets failed in the United States, and several others were strongly encouraged by the regulators to merge with other banks.” The article also goes into how forced mergers and acquiring banks will continue in 2009. It also stresses the importance of ‘core deposits’ and increased regulation. http://www.jonesday.com/pubs/pubs_detail.aspx?pubID=S5768
- Almost $1 billion in stimulus funds will be directed towards upgrading IT systems in the federal, state and local governments of the U.S. Technology Improvements for a More Efficient and Secure Government http://appropriations.house.gov/pdf/PressSummary01-15-09.pdf
- Social Security Administration Modernization: $400 million
- Farm Service Agency: $245 million
- State Department Technology: $276 million
- Department of Agriculture: $44 million
- In the United Kingdom the FSA’s FSCS program had E&Y published the “Fast Payout Study Report”. The Financial Services Compensation Scheme (FSCS) is the UK’s statutory compensation fund for financial defaults. In the report IT investments are estimated at £891.8 million with the biggest driver of cost being set up and maintenance of a single customer view. http://www.fsa.gov.uk/pubs/cp/cp09_03.pdf
Silver Lining in the Financial Turmoil
The theme I am describing here is one of OPPORTUNITY. While not to the degree of the proverbial ”ambulance chaser”, those of us in the Information Technology field can start to look at what we can do as consulting companies, software companies and innovation leaders. We can look at industry standards, web services, software as a service and business visibility through business process management and activity monitoring. We have a tremendous opportunity in front of us to contribute to the global economy and benefit from it both socially as well as financially.
In conclusion we all are affected in one way or another with the global recession but we can also contribute to its recovery by building world-class solutions that can benefit the global IT community. We should look at technical standards and industry standards to build solutions that solve the ’single customer view’ or the ’seamless information sharing’ or ‘human interaction touchpoints’ of the systems. With the maturity and general acceptance of Enterprise Architecture, SOA, SaaS and Cloud Computing we can start to make the silver lining into a bright future!