Over 60% of UK businesses will increase the amount of IT
functions they have carried out by suppliers while less than 10% of
UK businesses will reduce the amount of IT theyoutsource.
The latest survey of over 100 UK businesses carried out by
sourcing consultancy Equaterra revealed that the recession is not
reducing businesses' demand for outsourced IT services.
The study was conducted during the current economic
downturn.
"[We] have not found any indication that economic conditions
will significantly negatively impact outsourcing demand in the UK
market. Indeed [we] expect that economic conditions will further
drive demand for outsourcing as UK organisations more aggressively
seek means to reduce costs, defer or limit future investments, and
realign operating models to lower revenue levels," said
Equaterra.
According to the report 63% of firms are looking to outsource
more compared with54% in the same study last year.
"Our findings show that outsourcing is significantly increasing
in popularity among major UK organisations," said the report.
"It is equally clear that sourcing or the use of third party
business and IT services in general, and the outsourcing model to
access those services in particular, has become an established and
commonly used business tool."
The report found there has been a temporary slowdown in spending
on IT outsourcing by certain companies as businesses experience
turmoil. But it said spending is likely to be stronger when
companies set their strategies for dealing with the slowdown.
The survey said 80% of businesses cite cost savings as the
principal driver for increasing existing levels of outsourcing.
This is an increase of 11% compared with last year.