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Managed IT outsourcing market to grow in credit crunch

News Article - Wednesday, August 6, 2008 11:45
Filed under: Industry News
The practice of managed IT outsourcing is increasing in the current economic climate as firms look to maximise their profits.

According to Nick Holland, a partner at Eversheds, more companies will look to managed IT outsourcing in order to cut internal costs, ComputerWeekly.com reports.

Gartner has predicted managed IT services spending will increase by 9.5 per cent this year, with this set to continue into 2009.

The International Association of Outsourcing Professionals recently held a meeting to highlight the impact the credit crunch will have on the industry and attempt to bring UK and European practices up to date, reports the computing website.

In particular the practice of multi-sourcing is advised to reduce costs further.

This is where one buyer uses a number of suppliers to support one business function, meaning a multi-bidder procurement phase can increase price competitiveness.

It was recently advised by Jennifer Harkness, writing on WhatPC?, that firms should handle their managed IT outsourcing contracts carefully to ensure they get the most from them.
 
 
 
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