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Firms 'to maintain external IT spending'

A new report suggests that firms will not reduce their spending on external service providers (ESPs) when the economy recovers, which may be good news for those seeking new IT contractor jobs.

IT industry analyst Gartner discovered that 85 per cent of organisations believe their spending on external services will increase or remain the same when the economy is shown to be clear of recession.

In addition, 76 per cent of respondents said they expect recovery to be seen sooner rather than later, with some claiming it has already occurred and others predicting it will come around in 2010.

Allie Young, vice president and distinguished analyst at Gartner, claimed the recession caused many businesses to be more cautious in their IT spending, leading to greater use of procurement departments in services sourcing and increased contract renegotiations.

'However, the good news for service providers going forward is that the majority of buyers of IT and business process services will increasingly turn to ESPs to support the execution of their IT strategies,' she commented.

Last month, IT research firm IDC predicted that spending on technology by western European governments will exceed $68.6 billion (£43 billion) by 2013.
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