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IT outsourcing 'could grow in credit crunch'
 
The ongoing economic downturn could lead more businesses to use IT outsourcing in an attempt to cut costs, it has been claimed.

Gerry McLaughlin from ITcontractor.com said during the current difficult time companies are attempting to reduce costs, with IT being one of the areas he highlighted.

He pointed out that this approach leads to firms reducing the number of staff employed in their in-house IT departments.

Mr McLaughlin continued: "Finance directors then look at long-term solutions in terms of cutting costs - and the solution they often come up with is outsourcing part or all of their IT capability."

However, the expert cautioned against using IT outsourcing companies based outside the UK, as the distance in terms of time, space and culture can result in problems.

According to research from e-skills UK and Experian, the IT industry is expected to grow by 2.5 per cent, while employment in the sector is predicted to see 1.9 per cent growth over the next ten years.

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