Global custody makes it to the IT list

Global custody isn't the most exciting corner of the banking world. But recruiters say its sexiness quotient is rising, and it offers a growing number of roles for IT professionals.

However, global custody is big business - the total value of assets held in 2005 was over $65 trillion.

It's a market where there are increasing opportunities for IT professionals, says James Piers-Oxley, a consultant with city recruitment firm Drayton Finch. "Custodians are competing for business, and they're relying more on peripheral services to win business," he says. "When one custodian adds a new service, such as data management, they all add that service."

Custody providers have invested enormously in new applications to support the new generation of custody services - but these services generally run on legacy platforms.

While there is no single technology that is particularly in demand, there is a shortage of skilled business analysts, system integrators and business process re-engineering experts, says Alicia Bailey, manager of FSS Technology.

Bailey adds that custodians are hiring IT professionals with experience of working with cross-border agreements and shortened settlement timescales, and who also have good functional expertise.

Salaries in custodian roles have traditionally lagged behind those in banks, but this is definitely no longer the case, says Bailey. "Because of the increased number of roles, and providers working with custodians to deliver services, there's potential to earn just as much money," says Bailey.

In addition, because of the massive growth of outsourcing in custody, IT professionals in these companies may often work for a systems integrator, which will generally pay a highly competitive salary.