Businesses 'overpaying for IT services by 40 per cent'

Chief information officers are overpaying for IT services by as much as 40 per cent, new research has shown.

According to data from Compass Management Consulting, unnecessary customisation, redundant capacity, unconstrained consumption and restrictive contracts are the main drivers behind the trend.

While efforts to cut IT costs - which could include implementing VoIP solutions to save on communication expenditure - have largely worked, greater reductions are possible.

Steve Tuppen, from Compass Management Consulting, said: "The trend line for IT spending continues to rise, despite falls in hardware, software and service costs … many buyers of IT services are consistently overestimating the unique level of their IT requirements."

In its recent newsletter, advisory website Network World stated that VoIP can have a number of benefits for businesses.

One of them is the fact that VoIP hardware represents a "controlled and predictable cost", while improved efficiency is another major plus point.