IT outsourcing can improve business performance while reducing overhead costs, it has been claimed.

According to IT services provider SafeEvault, outsourcing the backing up of critical data is one of the best ways to increase the level of protection while decreasing the expenditure required to perform this vital function.

In a statement, the group said small to mid-sized businesses in particular need to prepare themselves for the financial challenges posed by the current economic downturn.

“The emergence of remote online data backup service providers is making it possible for companies to move away from expensive and antiquated backup strategies,” the firm added.

“Data protection is one IT requirement most companies spend too much time, resources and money on.”

Last week, IT industry analyst IDC released figures indicating the top ten global IT outsourcing firms earned around $27 billion (15.5 billion GBP ) in 2007.

Studies carried out by the company found 64 per cent of this revenue was tied to discrete engagements and 36 per cent integrated within larger IT outsourcing contracts.