Exploring the Perceptions of Executives Regarding Information Technology Infrastructure Cost Reductions in the Banking Industry

Bank executives make strategic information technology (IT) infrastructure decisions regarding the future of their financial institutions knowing that IT infrastructure costs continue to escalate. This infrastructure consists of hardware, software, and communications networks. The research problem addressed in this study was a lack of understanding of the IT infrastructure challenges that were perceived by banking executives to contribute to the cost factors that impact Canadian Banks. The purpose of this study was to explore the perceptions of Canadian bank executives regarding the underlying IT infrastructure costs in their banking environment to identify the contributing factors to unplanned costs and make usable recommendations to address the issues. A qualitative, phenomenological study was most appropriate for the purpose of obtaining information regarding the IT costs phenomenon because there were thematic elements to be extracted by using the modified Van Kaam method as prescribed by Moustakas. Twenty executive participants were interviewed in person for this study. The results suggested that there were 6 themes that emerged for the data in relation to IT infrastructure cost reductions: (a) software currency, (b) strategic roadmaps, (c) challenges to IT infrastructure changes, (d) emerging technologies, (e) operational procedures, and (f) social responsibility. The recommendations from this study will help decision makers across many industries and in other countries implement solutions that impact social change through the cost structures that can lead to a decrease in costs throughout the value chain that includes employees and the end customer.