Research covering 630 contracts by KPMG has shown that cost is decreasing as a factor for the outsourcing of IT by businesses.

The research has shown that 70 percent of businesses are influenced by cost when looking at outsourcing IT services, compared with 83 percent from two years ago.

Other reasons for outsourcing services included the need for better quality services at 46 percent and 51 percent citied the lack of in-house skills for the cause for outsourcing.

Lee Ayling, partner in KPMG’s Shared Services and Outsourcing unit, commented: “Companies are now looking at how outsourcing helps improve the quality of service they can offer to customers”.