Half of all businesses that outsource their IT services are planning to outsource further services in the coming years, according to a survey of businesses conducted by the National Outsourcing Association.
Over 60% of businesses are planning to outsource services that are currently run in-house. Companies within the banking and finance sector were the most confident about using outsourcing.
But businesses are looking for more from their agreements, especially as the recession bites. On average, businesses are looking to cut some 15% from their costs from future deals, as compared to the average 10% reduction they demanded before the recession.
Martyn Hart, chairman of the NOA, said, "Outsourcing has traditionally been seen as a cost saving mechanism for business, so during the torrid 2009, it is not surprising that interest in outsourcing is continuing to grow.
"However, continued focus on cost above everything else means that many are pushing through higher-volume, low-cost contracts over shorter timeframes. This short-termism can be dangerous and these kinds of contracts frequently fail.
"That said, it looks like suppliers still have some work to do to ensure they are fully catering for what users want in 2010. This is likely to be an ongoing issue as users continue to seek new cost savings from less-mature providers and locations around the world."
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