26 Mar 2009

Outsourcing costs set to fall

The cost of IT outsourcing is set to decline over the coming months, according to research by an industry specialist.

Analyst Gartner states the price of business outsourcing may fall by up to 20 per cent in the next two years.

It claims the global economic crisis is creating intense competition which may benefit customers looking to save money.

Claudio Da Rold, vice president of the company, says many vendors are analysing clients' needs on an individual basis in order to renegotiate the best possible contract.

"These are not price list reductions but represent an overall price reduction on infrastructure outsourcing deals that may apply to news deals and, albeit only partially, to renegotiated deals," he comments.

Mike Devlin, a director at sector specialist Morse, recently claimed flexible outsourcing can benefit businesses having difficulties with balancing IT and business needs, as it matches skills availability against cost.