IT outsourcing remains a popular choice for businesses during the economic downturn, the latest study has shown.

According to research by Patni Computer Systems, 40 per cent of IT directors plan to increase their use of outsourcing in the next 18 months, compared to 22 per cent who are planning to cut back.

Brian Stones, executive vice president for Europe, the Middle East and Africa at the researcher, commented that the recession means firms are focusing on cost-cutting and efficiency, which could be achieved through IT outsourcing.

The financial services industry was found to be the sector most embracing these methods, with 48 per cent planning to increase their spend in this area.

Mr Stones added that this is not a surprise, as these firms need to ensure that they “maintain service delivery” during the downturn.

Earlier this week, Alsbridge claimed that IT outsourcing can save companies as much as 30 per cent, allowing them to invest this capital into other areas.