Downturn 'driving managed IT outsourcing'
News Article - Friday, November 14, 2008 12:11
Filed under: Hosting, Storage & Managed Services
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 Managed IT outsourcing is likely to increase in popularity as a result of the economic crisis, it has been claimed.
Research carried out by IT consultancy EquaTerra indicates end-users will turn to outsourcing as they seek cost-cutting initiatives.
The group points to factors such as the growth of flexible service delivery models, a slowing of globalisation, and therefore the global sourcing of services, and closer scrutiny of the benefits IT services can provide.
"Buyers will continue to shift away from the use of project-based contract labour in favour of longer-term, formalised outsourcing relationships," the group continued.
The enterprise went on to say firms will get better deals from their managed services providers if they commit to longer-term contracts.
Last month, Consultant News reported comments made by IT services provider Jermyn Consulting that UK firms have a tendency to overspend on inefficient disaster recovery and business continuity schemes, while neglecting remote backup facilities.
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