High bandwidth connectivity rising

Businesses are increasingly demanding faster and more reliable high bandwidth connectivity solutions thanks to growth in the cloud computing sector, reveals One Stop Click.

According to Virgin Media, demand for high bandwidth connectivity is up massively on previous years - partly because of the increasing number of businesses adopting cloud computing and other IT outsourcing technologies.

"There is a growing requirement for super fast, highly resilient connectivity in the data centre market as the amount of applications and content being stored remotely continues to grow," Virgin Media Business product manager David Green says.

It is widely accepted that London and the UK are not measuring up to other countries as a digital economy, according to one expert, which may encourage more firms to consider IT outsourcing, says iHot Desk.

Denis McCauley, director of global technology research at the Economist Intelligence Unit (EIU), says: "There are many policymakers, business leaders and industry experts who are justifiably proud of the UK's achievements in some areas of digital development."

However, he reckons there is broad recognition that Britain currently lags behind other nations in key areas of digital development - an issue which could potentially be addressed through greater use of IT outsourcing.

America's top banks including Citigroup, JP Morgan and Bank of America are set to outsource IT and back office projects worth nearly $5 billion this year to India, as they seek to lower costs of complying with new regulations and integrate banking systems, reports The Economic Times.

According to at least a dozen senior executives at Tata Consultancy Services , Infosys, Wipro , HCL and Cognizant, apart from outsourcing consultants advising these banks, new investments in compliance and regulatory norms, ongoing integration with acquired assets are among top drivers for this spend.

While the Bank of America is merging its systems with Merrill Lynch, JP Morgan Chase is driving its integration with several acquired units including Washington Mutual.