Small businesses in IT are much more willing to hire trained staff than they are happy to invest in better hardware or software for their firm, according to the latest research put out by a leading organisation.

The British Computer Society - now rebranded as BCS, the Chartered Institute for IT - found that to get a better-skilled workforce, 65 per cent of respondents want to see a focus on IT education at all levels while the same number desire improved investment in IT skills development.

David Clarke, the chief executive officer of the BCS, said: "Investment in IT education and skills is essential if we are to turn a nascent economic recovery into a long-term competitive advantage."

He explained that the UK's ability to process, manage and share information will determine the success society could gain.

Mr Clarke added: "To be successful, we need a high performing IT education system and a population with the IT skills to be productive, empowered citizens."

The BCS is the professional membership and accreditation body for IT and serves over 70,000 members across the UK and world at large.

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.