Domestic Downturn a Boon for IT Services Firms

Demand for IT services will likely buck an economic slowdown as companies look for ways to cut costs while spreading operations overseas, according to analysts.

Tech trend watchers from Gartner expect services spending to increase nearly 9% to $733 billion this year, vs. 8% growth for the entire IT industry (which includes services, software and hardware).

The primary growth driver will be companies looking for ways to pare costs and sustain profit margins as the U.S. economy slows and profit growth recedes. ...