A new report indicates that growing businesses are more keen to use IT outsourcing services, as well as more likely to use more sophisticated software.

Durham Business School and Microsoft found that growing companies are more in tune with how IT can be used to circumvent problems than companies that are not expanding, and also recognise that it can be used to spur growth.

Nearly a third (32 per cent) of those companies who reported little to no growth said they do not spend enough on IT, compared to 19 per cent of rapidly growing organisations.

Expanding firms said they are more eager to seek IT advice from external sources, and that they see IT as a way of improving customer relations, gathering information and promoting flexible working.

In contrast, static firms rely on IT mainly to support internal processes.

"It is clear that while many non-growth companies would like to spend more on technology, a narrow focus on cost control and internal challenges such as reporting and compliance is not enough to deliver business growth," said Microsoft's Simon Hughes.

Another report, by the Economist Intelligence Unit, concluded that placing importance on IT was a good move for mid-sized firms.

In a recent survey of SMEs for Connect, the two most important benefits of outsourcing were 'guaranteed response times' and 'allowing in-house IT staff to concentrate on more strategic issues'