Outsourcing IT as well as other processes is enabling small businesses to work faster and smarter, claims one specialist.

Martyn Hart, chairman of the National Outsourcing Association (NOA), says that back office functions such as accounts, human resources and IT are a distraction to many small to medium-sized firms.

He believes that outsourcing them to a third party allows the company to switch its attention to more lucrative functions such as sales and marketing.

“It is better to focus on things like customer satisfaction, outmanoeuvring the competition and securing new business,”

said Mr Hart.

“Outsourcing is not just about cutting costs. Dedicating your time and energy to strategic leadership will improve your businesses’ prospects in these difficult economic times.”

His comments echo the figures raised in the recent a Norton Rose survey, which found that 87 per cent of consumer companies and 86 per cent of suppliers feel outsourcing is an effective way of driving down unnecessary costs.