Firms likely to continue turning to external IT providers during recession, says survey

Confidence in outsourcing has not been dented by the global financial turbulence, according to research.

A survey conducted by research firm Vanson Bourne for outsourcer Patni Computer Systems polled 100 UK IT directors and CIOs of firms having a turnover exceeding ?1m, and found 80 per cent of the respondents confident their investment in outsourcing is delivering value.

Forty per cent of the IT directors plan to outsource more IT in the next 18 months, with only 22 per cent saying they plan to cut back.

Lack of skills is a big driver behind firms’ decision to outsource, said Patni’s European executive vice president, Brian Stones.

“It’s not surprising to see that financial services companies in particular are embracing outsourcing as it helps them, along with other vertical sectors, to ensure the ability to maintain service delivery and plug the skills gap during these uncertain times,” he said.

About two-thirds (63 per cent) of IT directors said their confidence in outsourcing had increased due to the difficulty of developing equivalent skills in-house, while 59 per cent said their service levels had increased thanks to outsourcing.