More than one in five (22 per cent) of UK small and medium enterprises (SMEs) are considering offshoring next year.

Additionally, a fifth of SMEs have increased their interest in offshoring as a direct result of the recession, according to research from Sri Lankan outsourcing body SLASSCOM.

The research also highlighted some concerns for SMEs considering offshoring, notably

fears about a loss of control (33 per cent) and data security issues (22 percent).

Another important concern was that of possible reputation damage associated with offshoring, with 21 per cent stating this as a worry.

Madu Ratnayake, general secretary of SLASSCOM said: “Interest in offshoring in the SME sector is both a symptom of the need to cut costs and a recognition that one country doesn’t always have all the skills needed for success.”

Martyn Hart, chairman of the National Outsourcing Association, added: “Many larger businesses have already reaped the benefits of offshoring business models and now it’s the turn of the SME. We expect a significant increase in cost-based and strategic sourcing across the SME sector.”