IT outsourcing contracts will increase in importance as the credit crunch continues, a lawyer asserts.

Kit Burden, a partner at DLA Piper, writes on Silicon.com that an awareness of cost will increasingly filter through into the sector, as customers and businesses seek to reduce overheads.

He predicts customers will be looking to secure the most solid deal they can, whereas providers are likely to request up-front payments.

“Some may be tempted to take on additional contract risk by accepting lower limits of liability or lower service credit caps leaving themselves exposed,” Mr Burden claims.

Warning businesses not to sacrifice their long-term goals for immediate savings, he says processes such as IT outsourcing must be underpinned by a strong contract.

According to a recent report by IDC, IT outsourcing providers will become increasingly more flexible, working with smaller firms and investing in new delivery models.

It claims the end of the “megadeal” has arrived and contracts will more frequently be made with small and medium enterprises.