A majority of Indian companies expect an increase in their IT outsourcing investment over the next two years as they are looking at reducing operational costs and improving business performance, a study has said.
According to a study titled 'Inside the end-user's mind: India IT services demand side analysis' by IT market research and advisory firm Springboard Research, about 65 per cent of IT decision makers in Indian firms expect an increase in IT outsourcing investment by their company in the next two years.
About 29 per cent of the respondents expected investment to remain constant during the same period, it added.
The study said that enterprise demands for reducing operational costs was the primary reason for this investment in IT outsourcing, it added.
About 84 per cent of the Indian enterprises expect a significant impact on their IT budgets due to the current economic downturn, with budgetary pressure being a core driver for this acceleration of investments in IT outsourcing.
Furthermore, highlighting these budgetary concerns, over a third of all respondents have reported withholding or delaying IT-related investments and report increased cautiousness with IT investments.
