IT outsourcing 'faces downturn'

The IT outsourcing industry can expect a downturn in fortunes in 2009, an industry expert has claimed.

IT analyst Richard Holway told Computer Weekly the sector could see a recession of as much as two per cent next year.

However, he allowed that different companies within the industry face different prospects.

"There are going to be some areas which are going to grow dramatically, some areas, unfortunately, that I believe are going to see fairly major declines," he said.

"I think that the average, for the first time, is going to see a very minor, but still, a negative for 2009."

Mr Holway went on to say IT firms could withstand the downturn for as long as 12 months, but the credit crunch will finally catch up with technology markets in 2009.

Earlier this week, IT analyst Gartner claimed fixed and mobile telecom carriers should transform their IT and service technologies to support new services in the digital age.