More firms to use IT outsourcing, says expert

Posted by Louise Tate

Companies are more likely to use IT outsourcing as the economy starts to recover from recession, it has been suggested.

A recent report from IT industry analyst Ovum claimed that one-third of chief information officers predict their budgets will increase in 2010, although the average rise is only expected to be between one and five per cent.

Patrick O'Brien, a senior analyst at Ovum, pointed out that firms decreased their investment in IT outsourcing during the economic downturn, as they avoided entering into long-term contracts.

"I really do expect in 2010 for outsourcing to pick up. The markets already expect that as well, judging by the fact that the share prices of outsourcing companies have outperformed the general market over the last six months," he commented.

Mr O'Brien also claimed that most companies will mainly use IT outsourcing to reduce their costs throughout the economic recovery, although some will hope it can increase flexibility and allow them to retain customers or bring in new business.

Last year, the International Association of Outsourcing Professionals claimed the rise of cloud computing will increase the flexibility of outsourced IT services.