Growth in the worldwide IT services end-user sector is set to grow by 8.7 per cent this year, compared to 2006.

Research firm Gartner found that this kind of spending is likely to exceed $730 billion in 2007, with IT outsourcing (IT management and process management) due to remain the fastest growing area in the market.

Core outsourcing services are set to represent 41 per cent of total worldwide IT services end-user spending, while the development and integration segment is also growing steadily.

The latter sector is forecast to reach $225 billion this year, up by nine per cent from $206 billion in 2006.

"While many businesses remain focused on improving internal processes and reducing costs, investing in innovation is more widespread than in recent years, providing two solid reasons to invest in IT services," said Gartner's vice president of research, Kathryn Hale.

"Global delivery models are meeting both needs by enabling buyers to effectively use labor arbitrage which simultaneously stimulates some demand for services that might otherwise be unaffordable, while dampening spending growth for many services that now cost less."

A recent Connect survey found that the two major concerns about outsourcing services like IT support were 'loss of control' (56 per cent) and 'budget over-runs' (43 per cent)