IT outsourcing the way forward to cut costs

IT outsourcing will grow if the UK enters a recession, according to the HR chief at a provider that has boosted its takings this year.

Barry Hoffman, HR director at Computacenter, said employers would increasingly look to third-party IT providers to cut costs.

The firm, which employs 5,000 people in the UK, last month announced revenue growth of 8% in the first half of this year. It saw revenue of £2.38bn in 2007.

Computacenter said it expected to make lower profits in the first six months of this year than the same period last year, largely due to investment costs and a poor start to the year.

But Hoffman told Personnel Today that the IT outsourcing and infrastructure firm was in a good position to cope with the current economic turmoil.

“The IT outsourcing market will grow,” he said. “In an economic downturn, people look to outsourcers to cut costs and add value. We innovate with our clients to add value for them.”

But Hoffman added that there was no room for complacency.

“The situation still challenges us,” he said. “We cannot take our eye off the ball.”

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