Frankfurt, Germany (March 31, 2004) Cylite Consulting, a Frankfurt, Germany based firm focused on market entry and business development support for financial services software vendors, sees a clear recovery of the finance software market in the Germanic region. "After two years of little spending on packaged application software and productized service and consulting offerings, financial services organizations use their own financial recovery to work through the application backlog piled up" states Stefan Schnitzler, Managing Partner at Cylite.
Primary drivers for new software investments are the inability to further maintain old legacy systems at reasonable cost, regulatory pressures (Basel II, Sarbanes Oxley, Anti Money Laundry), and overall cost reduction. "Cost reduction is a significant motivator for banks to invest in today's climate" states Schnitzler. Whist "qualitative" arguments such as better services, faster systems, and ease of use sold well in the late 90s, quantitative arguments matter most.
"Quite often bankers expect a return on investment of less than 18 months for application software decisions. Also, the product itself isn't the only decision criteria any more: vendor risk and project risk are in the spotlight of most decision makers. This puts quite some pressure on vendors' sales forces to get their value proposition right" adds Schnitzler.
Cylite provide extensive support and consultancy services for banking software vendors across continental Europe. They provide in-depth market analysis to get vendors' going to market strategies right and provide proven outsourced sales services spearheading their clients' cold calling and pipeline building initiatives.