Outsourcing will 'continue to be important'

Businesses will continue to invest in the likes of time billing software and resource scheduling software despite the effects of the recession, it has been said.

Mike Dean, a spokesperson for the National Computing Centre, explained that most buyers in IT have had to delay or stop planned expenditures due to constrained budgets brought about by a lack of confidence in the current economic climate.

He explained that many organisations will have to move to cloud computing or outsource some key applications if they are to succeed in the future market of the UK.

Mr Dean continued: "We forecast that hardware vendors will suffer the most, but IT service and software providers will pick up the slack as more companies, and public sector organisations outsource."

His comments follow a survey from Gartner which found that while organisations are continuing to drive down their IT budgets this year, worldwide software budgets will increase again in 2010.

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