IT Contractors woo the Public Sector

Many organisations have been forced to stop or delay any planned IT expenditure because of the impact of the global credit crunch on their finances, the National Computing Centre explained.

The NCC commented that businesses will have to choose between keeping the service they currently have in place or look to outsource key applications .

Mike Dean, a spokesperson for the NCC, said: "We forecast that hardware vendors will suffer the most, but IT service and software providers will pick up the slack as more companies, and public sector organisations outsource.

"Predicted demand for Windows 7 is strong," he added.

A recent survey by Gartner predicted that although total IT budgets are going to drop during 2009, worldwide software budgets are expected to increase the following year.

Software budgets are expected to increase by an average of 1.53 per cent in 2010, the research predicted.

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