The current economic climate is causing IT outsourcing to increase in popularity, it has been suggested.

According to a report by industry analyst IDC, the need for firms to reduce costs and optimise headcounts in the recession is causing an increase in the uptake of IT outsourcing services.

In addition, the group said that companies which have not previously considered the use of IT outsourcing should reassess this to reap the benefits the solution can deliver.

Marina Beale, senior market analyst of IT services at IDC, commented: “The current economic situation is driving more organisations to think seriously about outsourcing as a way to keep costs down, in particular we expect to see a greater interest in managed services.”

In addition, she noted that cost cutting will be a priority for most chief information officers and said that virtualisation, cloud computing and software-as-a-service are some of the solutions which they looking at to make savings.

Juraj Hupka, IBM global technology services manager, recently told the Slovak Spectator that IT outsourcing is popular as it allows firms to have more control of their costs.