The relationship between companies outsourcing IT departments and their third-party service providers has morphed into a “much deeper partnership” than it once was, according to one expert.

Writing for ChannelWeb.co.uk, Bindi Bhullar suggested that European business could potentially “save billions” through increased use of IT outsourcing.

He justified his claim by explaining how outsourcing IT is often an effective business strategy embraced by firms which need to reduce overhead costs and boost productivity on a limited budget.

Mr Mhullar went on to stress the importance of IT outsourcing clients building a strong partnership with their offshore provider, to ensure that they are able to adapt as technology evolves.

“Contracts need to be defined accordingly. Both sides need to think about how their partners would respond and how the framework would respond to changes in technology, economy and strategy,” he wrote.

Earlier this week, the Financial Times reported that Britain’s struggling asset management firms were expected to embrace outsourcing over the next three years in a bid to overcome rising regulatory costs.