IT outsourcing set to increase in 2008, experts predict
An increased number of large enterprises will look to outsource at least some aspects of their IT operations in 2008 in an effort to cut back on expenditure, a new study has found.
Research carried out by Syntel revealed that 53 per cent of large companies are planning to increase their outsourcing levels over the coming year, an increase from 38 per cent in 2006 and 48 per cent in 2007.
In comparison, just 28 per cent of the 250 IT professionals questioned said that they expected to cut back on outsourcing spending, while 19 per cent felt they would spend the same as last year.
Commenting on the study's findings, the company's chief executive Bharat Desai, stated "We are not surprised to see that over half the respondents in our survey plan to increase their spending in 2008 despite threats of a down economy."
"Outsourcing is a hedge against general IT costs and can be a strategic component of research and development....Investing in innovation becomes critical for companies to survive in consolidating or shrinking markets," he added.
According to Gartner, the global outsourcing market is set to grow by 8.1 per cent in 2008.
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