Almost two-thirds of companies in Western Europe will be outsourcing more IT and business process functions this year, according to the latest research.

Gartner found that IT outsourcing continues to be popular with firms, with renegotiation of existing contracts expected to rise to more than 60 per cent this year.

“The focus on cost reduction is driving a high usage of outsourcing and global delivery in Europe in 2009 and 2010,” said Claudio Da Rold, vice president and distinguished analyst at the researcher.

Gartner’s survey found that firms are increasingly relying on IT outsourcing to optimise expenditure, with more than 70 per cent rating budgets as their top concern in 2009, up 17.5 per cent from 2008.

Over a third of organisations are in the first stage of their next IT outsourcing endeavour, the research revealed, a rise of ten per cent on 2008.

Meanwhile, Ross Taylor, marketing manager at Direct Response, recently advised that businesses should ensure that a third-party provider has a proven track record before entering into a contract.