The lack of IT resources found in small firms makes it more likely that they will have unlicenced software on their systems, which may highlight the need for IT outsourcing.

Trade group Business Software Alliance (BSA) recently found that companies in London install more pirated software than any other part of the UK, amounting to an annual value of ?149 million.

Julian Swan, director of compliance marketing for Europe, the Middle East and Africa at the organisation, said that it is the smaller companies found in the city which are the main cause of the problem.

However, he added: “It’s not necessarily a deliberate act by any means. The trouble is that doesn’t mean that it’s not illegal.”

Mr Swan claimed that small businesses tend to view software compliance as less of a priority than enterprises which have the resources to staff a full IT department, which may show the need for outsourcing services in London.