There is a definite trend towards greater use of IT outsourcing, with the total contract value (TCV) of deals in 2008 standing at $42.2 billion (?28.3 billion), up from $29.5 billion in 2007, according to research.

Gartner reveals that the number of “megadeals” – characterised as being worth more than $1 billion – awarded to a single service provider last year was 12, an increase from ten in 2007.

Smaller deals, which constitute those below $50 million, saw a clear increase last year over 2006 and 2007 figures, according to the report.

“While economic forces can change priorities, the basic drivers of outsourcing remain intact – organisations still outsource for cost, efficiency, access to skills, focus on core business, innovation, modernization and even business transformation,” explained Alice Young, vice president and distinguished analyst at the researcher.

Last month, Gartner predicted that prices of IT services in outsourcing will shrink by between five and 20 per cent during 2009 and 2010 due to the uncertain economic climate, budgetary constraints and general market consciousness.