UK companies outsourcing more of their IT

UK companies are moving more of their IT spending to outsourcing, according to a new study which cites the recession as the main factor behind the increase

The study by Computer Economics revealed that spending on outsourcing increased from 3.8 per cent in 2008 to 6.1 per cent in 2009.

John Longwell, vice president of research for Computer Economics, a California-based IT research and advisory firm, said the recession is one of the key reasons why firms are increasingly opting to outsource their IT functions.

However, new developments are also impacting on firm's decisions, he noted.

"Cloud computing is a development that will result in more money being spent with outside service providers, regardless of the macroeconomic climate."

Called IT Outsourcing Statistics 2010/2011, the report also found that desktop support is the IT function with the greatest potential for reducing costs through outsourcing.

Last week, a report from REC Technology revealed that demand for people who work as an IT contractor is on the rise.