Financial Services Industry Moves Rapidly Toward IP

A rapidly growing number of financial services companies are migrating toward IP telephony networks, as firms hang their hat on networking-enabled business strategies. That is one of the conclusions of a recent end-user survey of this sector conducted by researchers at Fros & Sullivan.

According to analysts, the key challenge for financial services businesses is to prioritize technology purchases as the economy turns around. The survey revealed that 43.8 percent of respondents are currently evaluating or plan to evaluate an IP telephony solution within the next 12 months.

"The timing is right since Frost & Sullivan forecasts predict that businesses will replace the equipment they purchased during the Y2K era in 2005 and 2006," says Frost & Sullivan's Alpa Shah.

Cost savings is the number one reason for investing in IP telephony.

"Even as the economy begins to grow again, businesses remain concerned about their survival, and feel the pain of financial crises," says Shah.Improving internal communications and productivity are also reasons for investing in IP telephony solutions. These improvements can positively impact the bottom line. Financial businesses, which have faced even more competition in tough economic times with the entrance of many Internet-based competitors, are seeing that the need to become more efficient.

"This means doing more with less people on staff. This in return means investing in technology," says Shah.