The first few months of 2012 have seen an increase in the demand for outsourcing, with Morrison & Foerster’s outsourcing practice reporting a 20% increase in outsourcing activity.

Alistair Maughan, partner at Morrison & Foerster (MoFo) attributes this rise in activity to a drive for growth by Financial Services Companies. Companies are tending to use multiple suppliers as opposed to singular suppliers to allow room to negotiate more competitive deals. Maughan also noted an increased interest in outsourcing from property and pharmaceutical companies.

Maughan estimates that this increased interest will hold outsourcing in the buyer’s market for six to twelve months; however, Government plans to hive public sector IT into mutual companies could absorb capacity in the market and result in higher prices.