The majority (95%) acknowledged that reducing technology spend could damage their business in the medium to long-term.

The study was carried out by network support company Lifeline IT, to find out the key IT issues affecting commerce today. It questioned companies in industries ranging from finance and telecommunications, to retail and property.

Security was ranked as most important, with 97% citing it as their top IT priority, closely followed by resilience and reliability (96%). Despite rapid advancements in technology, only 14% felt it was important to keep abreast of innovation.

A surprisingly low 10% of those questioned rated Cloud computing as important, with nearly all of those polled (99%) believing the risks associated with the internet-based platform outweighed the business and commercial advantages.

Although some reports indicate that the global cloud computing market could be worth £10.4b by 2013, less than a quarter (22%) who took part in the research felt it would be commonplace in businesses in five years time.

Commenting on the findings, Lifeline IT founder and director Daniel Mitchell said: "Despite technology playing an increasingly important role in business growth and development, companies are failing to get to grips with some fundamental basics around security and innovation.

"IT and technology can be confusing but with credible advice and wise financial investment, it can bring huge amounts of added value to an organisation."

Companies from sectors including education, government and marketing also took part in the research, which is carried out annually by Lifeline IT. Over a third (36%) said they brought in external expertise to handle their IT needs, with 30% using an in-house IT department and 34% combining a mix of both outsourced and in-house.