IT

Increase in outsourcing could require more IT jobs in hosting firms?

More IT jobs may be needed at oursourcing companies as more businesses shift their IT departments to hosting firms.

A study by Computer Economics Inc showed that expenditure on outsourcing rose from around 3.8 per cent of total IT spending in 2008 to nearly 7.1 per cent between 2009 and 2010.

This could mean hosting companies will have to recruit as more businesses use their servers, which need to be maintained.

John Longwell, vice president of research for Computer Economics, said that the recession "seems to be accelerating an ongoing trend" of outsourcing, with more money being set aside for it.

"We're seeing a sharp rise in the number of organizations outsourcing applications to SaaS vendors, for instance," he said.

"Cloud computing is a development that will result in more money being spent with outside service providers, regardless of the macroeconomic climate."

Last week, the International Data Corporation warned outsourcing companies that they must keep up the flexibility and performance required by businesses, which could require further staff numbers.

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