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Companies' outsourcing spend to increase

Liau Yun Qing ZDNet Asia | March 16, 2010 7:36 AM PDT

Summary

A recent Gartner survey found that 85 percent of organizations anticipate their spending with external service providers (ESP) to increase or stay the same when the economy returns, pointing to a return to growth in the IT services market in 2010.
A recent Gartner survey found that 85 percent of organizations anticipate their spending with external service providers (ESP) to increase or stay the same when the economy returns, pointing to a return to growth in the IT services market in 2010.

In a Monday report, the research firm said 76 percent of organizations surveyed were optimistic about the economic recovery time frame and had indicated in their business planning cycles that there were seeing recovery as early as 2009 or occurring in 2010.

The survey of 1,073 respondents was conducted from November to December 2009 across the US, Europe and Asia-Pacific regions to determine how economic changes have impacted IT services buying and decision-making. Respondents were taken from a range of company sizes and vertical markets, excluding government organizations.

Allie Young, vice president and distinguished analyst at Gartner, said the recession was clearly felt by organizations who reported increased contract renegotiations with ESPs as well as increased use of offshore services.

For more of this story, read Companies' outsourcing spend to increase on ZDNet Asia.

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