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European firms 'looking to use IT outsourcing'

European firms
More than half of European businesses intend to outsource more in 2010, it has been found, which may see demand for IT contractors increase.

Research carried out by industry analyst Gartner found that 53 per cent of organisations will increase their use of external service providers, with 40 per cent planning on increasing spending on IT outsourcing.

The report claimed that companies are more likely to use external service providers because they are attempting to deploy technologies such as software-as-a-service, cloud computing and infrastructure utility.

Claudio Da Rold, vice-president and distinguished analyst at Gartner, said that firms are hoping to grow now the recession has ended, but retain a degree of caution.

'Although we conducted this survey in the first quarter of 2010, before the start of the Greek financial crisis, we believe that the cautious expectation of growth will continue in Europe beyond 2010,' he added.

Last week, Gartner claimed that firms are more likely to take on IT contractors than permanent staff in the coming months as chief information officers have to work with smaller budgets.
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