Companies which do not shop around for their IT finance deals could be wasting millions of pounds every year, according to new research.

According to Smartfundit.com, 12p in every £1 borrowed by some businesses to finance their IT is wasted on admin costs, charges and inflated interest rates.

In total, the company estimates that poorly chosen IT finance deals are costing UK businesses £1.9 million every day.

The figure was reached by factoring in things like the time executives have to spend dealing with IT sourcing and problems, as well as interest and office costs.

Larger organisations - such as the National Health Service - could be wasting as much as £41.5million a year by not effectively outsourcing their IT purchasing and support.

"Traditional sources of IT financing penalise both technology vendor and end-customer," explained Suki Gallagher, the company's chief executive.

"Poor deals reduce customer spending power and eat into revenue opportunities."

A recent study from PriceWaterhouseCoopers found that 57 per cent of businesses are now considering outsourcing their IT requirements.