Businesses are maintaining their use of IT outsourcing as they seek to reduce costs in the recession, it has been claimed.

The EquaTerra 2Q09 Advisor and Business/IT Service Provider Pulse Survey found that more firms are using the solution to drive down their costs and survive the economic downturn, rather than develop a competitive advantage.

Stan Lepeak, managing director of global research for EquaTerra, commented: “The fundamental motivation for outsourcing has always been cost savings. Now, that aspiration has become a mandate, driving narrowly focused, low-risk deals with specific cost-saving targets.”

The research also found that businesses are increasing their use of providers which are in their own country due to them allowing a greater sense of control than offshore suppliers, which may interest those considering IT outsourcing in London.

Last month, research from industry analyst IDC claimed that IT outsourcing is set to increase in popularity because of the challenges created by the current economic climate.