End user decisions will shape the future of the IT outsourcing industry, according to Gartner.

The technology research and advisory company said that within two years client decisions will account for half of all hardware, software and services purchases, reports ZD Net.

At a briefing in Singapore on Thursday, research vice president at Gartner Martin Gutberlet commented that clients are becoming increasingly technologically literate and making more specific demands of IT outsourcing companies, said the news provider.

He added that small and medium business enterprises (SMEs) are at the forefront of this trend and that this is especially true in India where there are a large number of "one-man businesses that are very open to trying out new technology".

The news follows reports last week that IT outsourcing budgets are consistent with last year despite the uncertain economic conditions.

Gartner questioned 1,000 chief investment officers and found that 62 per cent reported no change in their IT budgets.


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