Companies 'to keep spending on technology'

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New research has claimed that the majority of businesses will not reduce their IT spending with external service providers (ESPs) when the economy recovers, which could benefit umbrella company members.

A report by IT industry analyst Gartner showed that 85 per cent of organisations intend to maintain or increase their technology spending with external suppliers when the economy begins to recover from the recession.

Furthermore, the research found that firms are optimistic about when recovery will take place, as 76 per cent said it happened in 2009 or will be seen during the coming year.

Allie Young, vice president and distinguished analyst at Gartner, said the economic downturn led many firms to be cautious in their IT spending, resulting in greater use of procurement departments in services sourcing and more contract renegotiations.

“However, the good news for service providers going forward is that the majority of buyers of IT and business process services will increasingly turn to ESPs to support the execution of their IT strategies,” she added.

Last month, IT research company IDC suggested that spending on technology by western European governments will grow to be worth more than $68.6 billion (£43 billion) by 2013.

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