Celent, TowerGroup: Deep IT Cuts Proving Harmful

BOSTON - Market research firms Celent Communications and TowerGroup predict that IT spending by securities firms will decrease this year, but say user firms have slashed IT staff nearly to the point that they are harming themselves.

Overall, securities firm IT staffing has declined more than 15 percent since early 2001, according to the Celent report by Octavio Marenzi. Some firms, by saddling fewer employees with more work on systems unfamiliar to them, are damaging their operations.

"We believe firms are starting to take significant risks due to the reduction of staff," Marenzi writes. Celent and TowerGroup focus on the financial services industry.

Still, although chief technology officers (CTOs) have been "obsessed"

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