Credit crunch is driving IT outsourcing in UK property sector, says Connect

Connect, the IT support company for small and medium enterprises, has today revealed new figures that show IT outsourcing in the property sector is gathering pace as a direct result of the credit crunch.  
 
Mark MacGregor, Chief Executive of Connect, said:
“Since the start of the year, we have seen a 75% increase in the number of enquiries for IT support, with companies in sectors most affected by the credit crunch – notably property companies – leading the way.  The increase in enquiries is particularly marked in mid-sized companies with 50-500 employees, where the cost of their own internal IT department is seen as an overhead they can reduce or eliminate speedily.”
 
MacGregor believes that the main driver for this surge in interest is a desire to reduce headcount, but that the greater flexibility available from outsourcing is also an important factor. 
“Outsourcing is an obvious way to save money quickly - but many Financial Directors are also interested in finding ways to increase or reduce IT support to match the growth or reduction in their own employee numbers.  For some clients who want to retain some capacity inhouse, we have designed specific packages that allow us to take over, for example, server or third line support, leaving the customer to continue with the simple fixes.
 
However, Macgregor also had a warning for property firms looking to follow the outsourcing path.
 “Outsourcing can be an attractive option but companies need to be careful.  It is an old truism that you should not outsource a problem and expect it to be magically solved.  It is vital to spend the time at the start of any contract getting your IT strategy and processes right – only then can you have any confidence in successfully transferring your IT function to a third party.”

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