Demand for IT outsourcing will rise in the upcoming new financial year, it has been claimed.

According to Tata Consultancy Services (TCS), demand across verticals will be “robust” from April 6th, with companies splashing out more on discretionary spending due to higher budgets.

Chief executive N Chandrasekaran told IT Web that financial services, retail, manufacturing, banking and technology companies will present particular opportunities for outsourcing firms hoping to secure new clients.

“Demand is quite robust. What I see on the ground is the spend increasing and 2011-2012 will be a better year for the industry, better for growth,” he noted.

Mr Chandrasekaran added that demand for IT outsourcing will also rise in North America and continental Europe.

In related news, TUI Travel recently committed to a six-year outsourcing deal that focuses on IT Infrastructure Library (ITIL) systems and cloud-based asset management, on top of round-the-clock technical support for users.