07 Jan 2010

Companies to outsource IT infrastructure

Many UK businesses will revert to the pre-credit crunch practice of outsourcing their IT infrastructure when the recession is over, it has been claimed.

Patrick O'Brien, senior analyst at Ovum, said companies will look to outsource IT staff and systems as it enables them to better handle ongoing costs and improves flexibility within an organisation.

"It's something that vendors have been pressured into to be more competitive and look at things beyond simple cost cutting," he noted.

He added in the past, many customers felt short-changed by the service they received from outsourced vendors, but this is now no longer the case.

According to BT Global Services, a quarter of senior executives in the UK say that IT budget cuts have harmed or severely harmed profit margins and innovation.

Research by the company revealed 51 per cent of workers have noticed the impact of reduced IT budgets since the onset of the downturn.