SMEs embracing IT for the first time can find it to be something of a double-edged sword, new research shows.

A study conducted by the Cranfield School of Management found that although six out of ten SMEs though the web had improved the efficiency of their company, 46 per cent felt that it had made the day-to-day running of the firm more complex.

However, despite these misgivings the report said that it was now vital that SMEs embraced technology as otherwise they could fall behind competitors who had.

Andrew Burke, co-author of the report, said: "No player can afford not to use one or they would be 30 yards behind everyone else. It simply becomes necessary in order to compete."

In January David Thorp of the Chartered Institute of Marketing urged SMEs to embrace internet marketing as it is likely to surpass traditional channels in coming years.

According to a recent survey by Connect, the two biggest IT headaches for businesses were 'everyday hassles with IT' (37 per cent) and 'security concerns' (32 per cent) 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'.