IT outsourcing is set to grow in popularity during 2010, according to a report by the International Data Corporation (IDC).

The technology market specialist has predicted European IT services expenditure will increase in 2010 and 2011, with IT outsourcing being the main driver behind this.

The study revealed the industry could record a growth rate of 2.2 per cent next year.

It showed that IT budgets have stabilised along with the easing of economic conditions, resulting in some firms beginning to invest again.

Laura Converso, research manager at IDC European Software and Services, said: “Demand for projects and outsourcing will pick up towards the second half of 2010.”

She added that the need for IT services will be most prominent this year in the UK, Germany and the Nordic countries.

Patrick O’Brien, senior analyst at IT industry analyst Ovum, recently predicted a strong year for outsourcing IT as the economy emerges from recession.