Companies need to look closely at their IT investments to make sure they are getting the most out of their money, according to an expert.

Frances Karamouzis, research vice president at Gartner, says bosses should scan the market and weigh up their options, potentially considering London IT outsourcing as a way of reducing costs.

“Managing IT costs is not just about buying the hardware and software. The big spending is in the delivery of IT services to design, build, deploy and manage those assets,” she states.

The key to saving money lies in the way these are executed, she adds.

Firms should also look at how their IT infrastructure is delivered and perhaps examine alternative methods such as software-as-a-service for their applications, Ms Karamouzis recommends.

Last month, Gartner predicted that IT outsourcing will continue to grow during the recession as companies face “financial and competitive challenges”.

The analyst reported that firms are re-assessing their contracts to maximise efficiency and reduce costs.