Sales of investor software accounting solutions for hedge funds and fund of funds is set to fall away over the next few years, according to researcher Celent.
It found sales will fall from a peak US$15 million in 2008 to US$14.1 million in 2010, before picking up again in 2012 growing to US$14.8 million.
It said the fall will be driven by uncertainty surrounding capital markets and the hedge fund and fund of fund industry, as well as widespread retrenchment in IT spending in 2009.
“Spending on new technology, including investor accounting systems, will take a back seat to realising efficiency wins from existing applications infrastructure while lowering maintenance costs or at least keeping the status quo,” according to a media release.
“Unless faced with a collapsing platform, large-scale system acquisitions or replacements are expected to be postponed.”
Beginning in 2011, Celent said, new investment spending is expected to accelerate as hedge funds embark on fresh IT projects related to business growth, and by 2012 budgets will have returned to a more solid growth pattern.
