Spending on IT outsourcing is set to increase during 2008, according to a new survey.

Of the 250 global companies polled in Syntel's TrendScan survey, 52 per cent said that the impact of financial turmoil would prompt them to increase their outsourcing spend.

Bharat Desai, chairman and chief executive officer of Syntel, said: "In a weak or uncertain economy, companies look for technology solutions that will increase productivity, efficiency and savings."

Furthermore, she claimed that Syntel was "not surprised" that over half the respondents in the survey planned to increase their spending in 2008 despite threats of a slow-down in the economy.

"Outsourcing is a hedge against general IT costs and can be a strategic component of research and development," Bharat explained.

The survey also revealed that just 28 per cent of businesses polled would spend less overall to conserve budgets during 2008 while 19 per cent said that their outlay would remain at around the same level as last year.

Syntel is a US-based firm which provides professional information technology consulting and applications management services to companies and government entities.

© Adfero Ltd