Hosted IT investments provide more advantages for small and medium-sized enterprises (SMEs), according to a new survey.

A study by web site BizTech Reports reveals that smaller companies which use hosted IT report higher levels of satisfaction than those which manage technology internally.

Additional benefits of outsourcing IT include less spending as a percentage of revenue, a larger number of strategic applications and a reduced rate of security incidents, the research states.

BizTech Reports chief executive officer Lane Cooper said that the results demonstrate that SMEs are keeping up with larger firms regarding technology investment.

"SMEs are much further along the sophistication curve than one would have expected when it comes to using technology to enable their businesses and build revenue," he commented.

"Companies that host are clearly gaining valuable benefits, with the most compelling argument that they are doing more, spending less and gaining tremendous benefits by focusing on their businesses, rather than on IT management."

BizTech Reports is an independent data reporting agency with offices in Washington DC and San Francisco.