In what may just be the first budget cut from the banking sector, Citigroup— of the world's largest bank's — is likely to have cut its global IT budget by 10 percent for calender year 2012, sources told CNBC- TV18.
The ten percent cut in the IT budget from the last year is better than the market expectation of around a 15 to 20 percent cut.
It has been learnt that the bank's board has finalised and approved the budget and most IT vendors have been intimated of the move, while the remaining will be informed in the next two to three weeks. However, the key takeaway is that there will be no price cuts for existing contracts.
Sources also told CNBC-TV18 that other banks like JP Morgan, Credit Suisse and Goldman Sachs will finalise their IT budgets in the next two to three weeks.
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