Business leaders have hit back after a SOCITM report branded ICT outsourcing as expensive and risky for councils.

The SOCITM report, entitled Costs of outsourcing – uncovering the real risks, claimed that while there were many benefits to outsourcing, smaller organisations, such as councils, did not have the economies of scale to keep up with latest products and developments. It said many elements of ICT services proved to be more expensive when outsourced and, in many cases, councils should be able to make efficiency savings themselves without the help of an external partner.