IT outsourcing growing in popularity through credit crunch

IT management firms are among those benefiting from the ongoing credit crunch, it has been reported, after it was found that the economic squeeze has been a driving force for companies outsourcing their information technology.

IT management firms are among those benefiting from the ongoing credit crunch, it has been reported, after it was found that the economic squeeze has been a driving force for companies outsourcing their information technology.

Technology firm Connect has benefited from a rise in enquiries concerning the management of outsourced IT from various companies affected by the credit crunch, and Mark MacGregor, chief executive, explained the reasoning behind such a shift.

In the "75 per cent increase in the number of enquiries for IT support since the start of the year", Mr MacGregor explained, "most [are companies] effected by the economic downturn, such as recruitment companies".

There are a small number of firms that have done well to profit from the credit crunch so far, including legal companies offering insolvency solutions.

However, outsourcing should not automatically be taken as a means of fixing all problems, Mr MacGregor added: "Outsourcing can be an attractive option but companies need to be careful.

"It is an old truism that you should not outsource a problem and expect it to be magically solved."