IT outsourcing in London is set to buck the trend of IT spending this year, as analysts predict that use of third-party services will grow.

Research from Pierre Audoin Consultants and TechMarketView stated that spending on software and IT in the UK will reduce by 1.36 per cent across the year, despite long-term forecasts being positive.

However, IT outsourcing investment is predicted to rise by 3.1 per cent during 2009, compared to software spending, which is expected to decline by 5.5 per cent.

Nick Mayes, analyst at PAC London, said: “Large suppliers with mature global delivery networks, intimate client relationships and annuity-based outsourcing businesses continue to fare better.”

Anthony Miller, managing partner at TechMarketView, added that new government projects may help the industry as a whole.

Regardless of who is voted in next year, IT outsourcing in London will “undoubtedly increase”, although this would be more pronounced if the Conservatives came into power, he said.

A recent study by Indian Software Outsourcing recently suggested that IT outsourcing in London is increasingly being used to help firms save money in the recession.