The urgent need for cost savings in the difficult economic climate is fuelling demand for managed IT outsourcing, it has been claimed.

According to global business advisory firm EquaTerra, 62 per cent of managed services providers expect demand to stay strong in the second quarter of 2009, up nine per cent on the previous quarter and 14 per cent year-over-year.

Stan Lepeak, managing director of global research for the company, commented that managed IT outsourcing deals are beginning to flow as the need to control costs outweighs reluctance to initiate major change efforts.

He added: “Ironically, despite populist backlash, the recession is likely to break through remaining resistance to outsourcing as business becomes more adept at using the tool to cut cost and improve efficiency.”

Earlier this week, IT industry analyst Gartner commented that strategic managed IT outsourcing is becoming increasingly popular.

The group added that organisations need to ensure that outsourcing electronic document publishing improves customer communications without sacrificing quality.