Friday, 15th October 2010, 13:30:33
A new report has suggested that more jobs could be created in the outsourcing sector as more companies turn to put their computer departments in the cloud.
PricewaterhouseCoopers (PwC) reported that around 500,000 public sector positions could be lost and that private sector output could reduce by £46 billion per year by 2014/2015.
However, more companies are likely to turn to managed hosting to in a bid to cut costs, causing growth in the outsourcing jobs market.
Jon Sibson, partner and head of public sector at PwC, said that partnerships are key, though outsourcing will continue to rise.
"Partnerships between government and private sector manpower providers could be put in place to performance manage and retrain staff, find new employment for them where possible, and to manage redundancies when necessary," he said.
"A sector likely to see growth opportunities from spending cuts is outsourcing, and not only in back office services."
Firms are turning to off-site dedicated servers to store their data, therefore reducing the costs of on-site management. Software as a service (SaaS) can also cut the need to have large IT departments.
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