Despite the majority of large firms now outsourcing at least one IT function, a fifth of IT directors at these companies believe their data is less safe as a result.

A YouGov survey of 550 IT directors commissioned by IT assurance firm NCC Group found that 89% of large companies in the UK outsource at least one IT system or business process.

The YouGov survey also found that 20% of IT directors surveyed working at large businesses believe their outsourced systems and processes are less secure than those based in-house, indicating a lack of confidence in outsourcing.

In addition, only 64% of IT directors at medium-sized businesses surveyed expected their companies’ suppliers to have formal security procedures and policies in place, compared to 78% at large companies.

Despite these growing concerns, a separate PA Consulting report says that 31% of companies plan to outsource more over the next year, suggesting that company bosses are more concerned with cutting costs, said NCC. It said companies are opting for low-cost providers that cannot prove their security credentials.

John Redeyoff, head of the "365 assured" security and performance certification service at NCC Group, said, “The security industry and IT directors are calling for suppliers to prove they are secure, yet companies choosing to outsource business critical systems simply aren’t asking the right questions, and are putting business critical functions at risk as a result.

“Businesses that fail to check their suppliers’ credentials, choosing cost and convenience over security, are investing in a false economy.”