IT contracts could bare brunt of initial government cuts

I blogged last week about how outsourcing is seen by some as a way of cutting the deficit but the new government could see cancelling outsourcing contracts as a better way to do this.

This could create uncertainty over the performance of numerous IT outsourcing service providers.

News that the new government could put contracts signed by Labour, before the election, on hold while they decide where to make cuts will create uncertainty amongst the IT community that specialises in this area.

A contact of mine said that the uncertainty about the coalitions appetite for outsourcing has already lead city analysts to downgrade the stock of some public sector outsourcing specialists.