No financial services segment is immune from economic and political trends that have slowed IT spending for almost two years. Macroeconomic trends have contributed to uncertainty about IT spending in each of the three major sub segments.
 
 The securities sector, which spent lavishly on IT in the late 1990s, has been the worst hit by the recession and now takes a frugal approach to IT. The insurance sector also experienced economic hardships in 2002, saddled with claims associated with Sept. 11 and also because of liabilities related to accounting irregularities at major corporations, such as Enron. Insurance carriers tend to turn to IT as a potential strategic asset in the face of increased competition and cost pressures, creating opportunities for IT vendors. Although banking has remained fairly resilient in the face of economic slowdown, the mortgage-refinancing boom appears to have finally run its course and commercial loan defaults have risen, placing continued pressure on IT budgets.
 
 Even in lean times, IT service providers earn competitive advantage. Providers serve both loyal and new clients with dedication and expertise that is repaid in ongoing relationships and marquee engagements and references.
 
 FSPs differ from other industry IT buyers, however, when it comes to cost and industry expertise. Reflecting the industry's price sensitivity, cost ranks higher in IT buyer's decision making in financial services than in other industries. Industry knowledge is also more important to financial services IT buyers than in other industries, which likely accounts for the trend towards more in-depth verticalization among top-ranked IT solutions providers.