IT outsourcing prices are predicted to contract by five to 20 per cent in 2009 and 2010 due to the uncertain economic climate, budgetary constraints and market consciousness, according to experts.

Gartner forecasts that increasing competition in the sector will lead to a fall in IT outsourcing charges, as more providers vie for custom in a bid to keep revenue growth on target.

Futhermore, buyers will become more cost-focused, necessitating reductions for IT infrastructure outsourcing, the research firm states.

“Regardless of the relative strength of outsourcing during a recession, many clients are reporting intense discussion with their vendors and renegotiation of contracts,” says Claudio Da Rold, vice president and distinguished analyst at Gartner.

According to its research, datacentre and network services will see reductions of between five and 15 per cent, application hosting prices will lower by between ten and 20 per cent and desktop/help desk support costs will decline by five and ten per cent.

Last month, Gartner advised companies to look closely at IT services investments as they attempt to reduce costs.