European businesses to outsource more IT


European businesses to outsource more IT

Kathleen Hall

About 53% of organisations in Europe will increase their outsourcing budgets in 2010, according to a survey from Gartner.

Of the 206 European organisations surveyed, 40% said they are planning to raise their external IT services spend. While 14% of those with IT budgets of less than €1m expressed an interest in outsourcing, compared with only 6% in 2009, it found.

SaaS and infrastructure utility implementations were up 6% and 5%, respectively.

However, Claudio Da Rold, vice-president at Gartner, said organisations will expect providers to deliver further cost reductions.

"Although 40% of respondents said they will increase the external share of their budget, only 24% said that they will raise the budget for providers, and almost a quarter of organisations still expect their IT services budget to decrease in 2010," he said.

The research confirms recent findings from the National Outsourcing Association, which showed that 60% of businesses intend to outsource services currently run in-house this year.

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