Outsourcing companies becoming 'savvier'

Outsourcing companies are adopting a much more progressive approach to technology in order to head-off their rivals and gain more custom, according to a leading expert.

Senior analyst at Ovum Patrick O'Brien explained that five or six years ago, many people felt "short-changed" by the offerings that were available in the world of business management software and, as a result, providers have spent a lot of time and money to improve their standing and innovations.

However, many firms have recognised this and are accepting the world of hosted IT with open arms - something which surprised Mr O'Brien yet marked out a positive future for the industry.

"It's something that vendors have been pressured into to be more competitive and look at things beyond simple cost cutting [...] to find the problems that their customers have and think of new ways to employ technology to solve those problems."

It follows a report from BT Global Services which concluded that both senior executives and IT systems users have felt the impact of budget cuts and 51 per cent of workers see the impact of reduced IT budgets since the recession began.

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