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News » IT Cuts to Lead to Outsourcing Boom
IT Cuts to Lead to Outsourcing Boom
More IT projects are set to be outsourced to Indian ICT companies as the public sector deals with post-election budget cuts, according to industry analysts TechMarketView.

In its UK IT Services Market Trends and Forecasts 2010 report, the firm predicts that the public and private sector IT services market in the UK will shrink by 2 per cent real terms in 2010, with growth returning in 2011.

Value for money is described as the "top challenge" for chief information officers, and outsourcing to countries such as India is set to benefit from this. TechMarketView say that business process outsourcing will perform strongly in coming years and that application outsourcing, including 'Software as a Service' (SaaS), will see double-digit growth.

TechMarketView also say contract decision making has slowed considerably in recent months, with the number of deals completed in early 2010 75 per cent lower than in 2009.
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