Buyers urged: dictate to suppliers on IT deals

22 May 2002
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23 May 2002

Firms will come under increasing pressure to outsource IT services this year but they should not be afraid to dictate terms to suppliers, a report has warned.

The IT outsourcing market will grow by 15 per cent to almost £8 billion, according to research firm Ovum Holway’s annual analysis of more than 1,000 software services firms.

“Outsourcing will be virtually the only way that customers can look beyond their noses while ‘making do’ within current budgets,” the report said.

But Anthony Miller, research director at Ovum Holway and the report’s author, warned them not to give in to demands to cut costs without considering sharing risks with suppliers.

SMmay2002

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