Spending on IT by the financial markets industry will hit almost $90 billion by 2015, driven by strong growth in Asia-Pacific (AP) and a bounce-back in the hedge funds sector, predicts Ovum.

In a new forecast, the Ovum beancounters have found that the Asia-Pacific region will see some of the strongest growth in financial markets IT spend, as global companies continue to transfer power to the region due to its growing economic strength. In China, IT spending will grow by a compound annual growth rate, of 8.8 per cent from 2011 to 2015. Meanwhile, Hong Kong will experience a boost of 8.1 per cent for the same period and Singapore 7.1 per cent. Although the amounts invested will be lower, growth in all three will outstrip the US and the UK with 6 per cent.

Daniel Mayo, Ovum financial markets technology analyst, said that there will be growth in nearly every major market, the Asia-Pacific countries will be at the forefront “ This is mainly due to global companies shifting their decision-making power from New York and London to cities such as Beijing, because of their growing economic influence,” he said.

Meanwhile, global spending on IT in the hedge funds sector will grow a by 11.1 per cent from 2011 to 2015. This is the strongest growth of all the lines of business and is being driven by a resurgence in the hedge funds market as investors seeking high returns forgive the woes of 2008/09.

Mayo said that hedge funds were badly affected by the financial crash, with investors staying away due to its disastrous performance. Investment in IT fell significantly in 2008 and 2009. However, investors seeking the high returns it can once again provide have come back, and IT investment is slowly growing as a result. By 2012, we expect the market to reach pre-recession levels, he said.