IT services spend to grow as economy recovers
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Businesses will spend more on outsourced IT services despite the improving economic climate, Gartner says
Spending on outsourced IT services will grow as the economy recovers, research by industry analyst Gartner has predicted.
Gartner’s survey of more than 1,000 private sector organisations showed that 85% anticipate that their spending on external IT service providers will either increase or stay the same as the economic situation improves.
However, the researcher advised that those who outsource will remain cautious regarding their IT spend, which could have repercussions for IT services providers.
“In terms of IT services spending, the recession has been clearly felt by organisations, which report the following changes in their behaviours: increased contract renegotiations with [suppliers]; greater influence of the CFO and procurement in IT services spending; and increased levels of offshore services usage,” explained analyst Allie Young.
“However, the good news for service providers going forward is that the majority of buyers of IT and business process services will increasingly turn to [them] to support the execution of their IT strategies.”
But Young also warned that the IT services market will remain “hypercompetitive”, and that external providers must focus on cost-effectiveness and demonstrate agility in reacting to market changes if they are to succeed in a post-recession environment.
