According to the National Outsourcing Association’s (NOA) IT outsourcing is likely to become a more popular among end-users. In its report, which surveyed outsourcing users in UK, more than a half of respondents expressed confidence in the use of outsourcing to support their business objectives. The report indicates that 52 per cent of respondents are reviewing existing outsourcing contracts and considering new sourcing opportunities as a result of increasing confidence across the board.

The report also assessed confidence across various verticals and found that the financial services sector is most positive (71 per cent) about the use of outsourcing in 2010 and beyond. The services sector also indicates high confidence with 61 per cent being more positive than last year; while the retail sector is marginally less confident at 55 per cent

Owing to the increased industry confidence, 60 per cent of users said they intended to outsource services not previously outsourced this year. Likewise 56 per cent of those already outsourcing planned to increase the scope of existing contracts.

Another IT industry analyst firm Ovum, pointed out that experts believed firms would use more outsourcing to captialise on the cost savings it can deliver. Patrick O'Brien, senior analyst at Ovum explained that firms will be more willing to base their strategic decision making around IT outsourcing as they are more confident about their future.

Last month, the analyst predicted a rise in the popularity of IT outsourcing over the coming months, as companies are hoping to benefit from the reduced costs it can deliver. He also claimed that the approach can permit firms to benefit from more flexibility, allowing them to dedicate resources to finding new business or retaining customers.