60% of firms to use outsourcing in 2009, says Gartner

Around two-thirds of Western European companies will be using an outsourced IT service such as resource scheduling software, a leading analyst has stated.

Gartner, the global IT research consultancy, said that existing contract renegotiations with IT firms who deal in small business software such as time billing are expected to rise to 60 per cent by the end of the year.

It explained that many more businesses will hope to use software-as-a-service as a way of making their operations more cost-effective and helping their offices readjust to the new demands of contemporary technology.

Vice-president and distinguished analyst at Gartner Claudio Da Rold said that while the market for outsourcing slowed during 2008 in terms of growth, there is now a particularly "high volume of activity" among businesses.

Mr Da Rold continued: "Under the current economic and technological conditions prices are going to decrease, creating a market full of opportunities and challenges for both end-users and external service providers".

Gartner employs over 1,500 analysts and it based in the New England city of Stamford, Connecticut.

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