Managers are experiencing difficulties in maintaining their IT operations while reducing costs, it has been suggested.

In comments which may show the need for IT outsourcing, Compass Management Consulting pointed out that corporate boards are increasingly demanding that IT departments make further budget cuts.

Paul Teather, regional president of the group, commented: “We are seeing organisations which made cuts in the first round that had unintended consequences in terms of service quality and even increases in overall costs.”

In addition, Mr Teather stressed the importance of businesses maintaining their operational efficiency even with limited resources, which may demonstrate a use for IT outsourcing.

The expert also pointed out that when the eventual economic recovery arrives, companies will need to be able to achieve their peak performance as quickly as possible to capitalise on the opportunities created.

A recent study from the IT Job Board found that 64 per cent of businesses have used a form of IT outsourcing in the past six months in a bid to reduce costs.