IT outsourcing likely to expand in recession

IT outsourcing and managed IT services are likely to expand in the economic slowdown, researchers have claimed.

Analysis of US Department of Commerce data by Forrester Research found that the IT budgets of North American and European businesses are expected to increase by three per cent.

Chief information officers are expected to focus on improving efficiency and helping to cut costs by increasing productivity, the report said.

"Sellers of communications equipment, software, and IT consulting and outsourcing services will see one or two quarters of declining revenues, but on average will still grow modestly in 2009," said Andrew Bartels, vice president at Forrester.

IT outsourcing firms are predicted to benefit from companies looking to reduce costs.

Earlier this week an expert said website design would be vital for companies hoping to survive the recession.

Michelle Salater, owner of Michelle Salater Editorial and Writing, said businesses are advised to seek help with internet marketing to increase exposure for their companies.