Greetings from the staff at Gardner Resources Consulting:

As of the writing of this article the 18 month recession still continues with financial markets eagerly awaiting corporate earnings reports to see what the implication might be for the second half of this year. Though market signals are mixed, financial services companies harbor guarded hope that the economy has hit bottom and might begin to experience some sustained improvement. This month's article explores the reasons for hope and impact on IT.

Article: A Time for Cautious Optimism

Information technology spending in the financial services industry continues to be negatively affected by the current recession.  However, we at Gardner Resources believe there is reason for cautious optimism based on promised governmental reforms and the industry's reliance upon technology to remain competitive in a tough industry.  Feedback from our clients and commentary from industry trackers also point to a moderate amount of optimism, though we are by no means out of the woods.

Opening the Door to Cautious Optimism
Even the mighty suffer cracks in the face of an earthquake and there's no question that the financial services industry in New England has suffered its share of fractures from the recession.  Many local institutions are still recuperating from the free-fall of the past few quarters.  To cope with the worst economic disaster in decades, area financial services companies drastically cut back on IT spending; reevaluated their technology investments and employment strategies; and reexamined the fundamentals of their business models and operations.

Signs for Cautious Optimism
The financial services industry has geared up, or more aptly, geared down for a bumpy ride through a distressed economic landscape.  But beneath the barrage of negative economic news stories lie signs of a still fragile, yet slightly improving economy.

Some promising signs include a stabilizing housing market, rising consumer spending and a reduction in the rate of job losses.  As of this writing, the Dow Jones Industrial Average has recovered from its lows but is still volatile. These indicators offer a spark of hope that we may be on the brink of a rebound, or at least at the end of massive job losses.  Read More