Making use of outsourcing can allow companies to become more efficient, according to one expert.

Computing.co.uk’s Talking Outsourcing blog reported that Marcus East, former chief executive of Breathe Internet, spoke at an Institute of Directors seminar about how outsourcing can be use to improve a business.

He explained that firms which outsource some of their activities can apply penalties to their supplier if they fail to meet set targets and this ensures that tasks are likely to be completed on time.

“If you have a big internal team then there is always a culture of it not being their fault when things go wrong. There is always an issue beyond their control,” he said.

Mr East also pointed out that outsourcing the network at his former organisation allowed it to save on capital expenditure, as it did not need to worry about purchasing and maintaining equipment such as routers, switches and other hardware.

The Talking Outsourcing blog also noted that Steve Fisher from KPIT Cummins spoke at the event and suggested that common mistakes in outsourcing include overestimating cost savings, failing to keep employees informed and not retaining talented staff.