The current market has “all the right ingredients” for IT outsourcing to grow, with businesses of all sizes looking to subcontract their technology needs, according to an expert.

Bruce Culbert, chief executive of iSymmetry, writing for Tech Journal South, says the economic conditions mean that firms are under pressure to cut costs, increasing the demand for IT services.

“Strategic use of IT still represents one of the best opportunities for competitive differentiation, but it is increasingly difficult to maintain a level of expertise across all of the broad opportunities and skills in IT,” Mr Culbert asserts.

He states that companies are using subcontractors to fill in their knowledge gaps, adding that firms look to IT outsourcing for the latest innovations in IT solutions.

Tata Consultancy Services recently revealed it has signed a $100 million deal with mobiletelephony enterprise 4uGroup, which analyst Ian Brown said demonstrates that IT outsourcing remains big business.