New research from Gartner.com has revealed that the majority of organisations cite cost-cutting as the top reason for outsourcing work.

The technology analyst cautioned, however, that while companies focus increasingly on savings many overlook the need to plan for long-term problems that can arise from having a predominantly outsourced workforce.

Among such issues is the fact that economy of scale and cash injection benefits fade away after the first year of employment, while the falling cost of technology also means longer-term infrastructure outsourcing frequently leave firms paying above market rates.

"There is no doubt that cost is a significant factor in any outsourcing arrangement," conceded Gartner vice president Linda Cohen. "However, organisations need to take a longer-term view of what an outsourcing relationship can accomplish for their operations overall."

Ms Cohen recommended companies set more realistic goals and increase their focus on IT budgeting if they wish to be able to focus on core mission-critical and business-differentiating services.

HCL Technologies was recently rated the world's number one infrastructure outsourcing vendor by the Brown-Wilson Group.