IT contractors may see an increase in the number of job vacancies, as IT managers across Europe fight to increase their budgets.

The latest research from Dynamic Markets and Numara Software, entitled Rebirth of the IT Budget, was conducted with more than 300 IT decision makers in large companies across the continent.

It found that 65 per cent of UK respondents had seen their IT budgets reduced as a result of the economic crisis.

However, many were fighting to have funds reassigned and were optimistic on their prospects for 2010.

These IT managers must ensure that they have a full picture of all their costs when looking to maximise their budgets, according to Numara Software managing director Andy White.

"In today's tough economic climate, hidden costs simply aren't acceptable, and knowing an organisation's real costs in relation to hardware and software assets is key," he explained.

Earlier this week, external affairs director for Equifax Neil Munroe warned that cutting IT security budgets will prove to be a false economy, as firms will naturally experience an increased in fraud during times of economic hardship