European Business To Increase IT Outsourcing

A new survey has revealed that almost half of all European organisations are planning to increase their use of outsourcing IT services in 2010.

The Gartner report, which surveyed 206 European organisations, found that 53 per cent of the companies were planning to outsource more in 2010, while around 40 per cent were working on increasing their spending on outsourced IT services.

The survey also revealed that only 24 per cent of European organisations were planning to increase their budgets for IT service providers, and that a quarter of the organisations reported that their IT services budgets will continue to fall in 2010.

In a statement to Computer World UK, Claudio Da Rold, vice president and analyst at Gartner, said: “However, the results also showed that the pressure on capital and IT operating expenditure is still strong, and European organisations expect providers to deliver further cost reductions.”

The survey also found that small organisations, with IT budgets not more than €1 million, were becoming increasingly keen on outsourcing their IT operations, rising up from 6 per cent in 2009 to 15 per cent.