Outsourcing computer coding could be increasing the risk to companies from hackers, a Quocirca report states.

The report found that while outsourcing the coding process can reap benefits in terms of functionality and user experience, the cutting-edge development used by specialist companies often creates dangerous vulnerabilities which can be exploited by hackers.

Despite these risks, outsourcing of software development is booming, with nine out of ten companies outsourcing over 40% of requirements, while all of the companies surveyed outsourced at least some of their software development.

However, when it comes to specifying outsourced code, one in five companies did not even consider security when designing applications.

Fran Howarth, principal analyst at Quocirca and author of the report, said: "The findings indicate that not enough is being done by organisations to build security into the applications on which their businesses rely. This creates an even greater onus for organisations to thoroughly test all code generated for applications, without which they could be playing into the hands of hackers."