Absenteeism would fall by 10% if employees were allowed to work remotely or on the move.
UK businesses could save huge costs by reducing the number of IT contracts and supporting flexible work hours, Virgin Media Business research has suggested.
A study of 500 CIOs and business leaders found that the majority of businesses said they could save over £1m by cutting back to just one IT supplier.
They also said that such changes would offer greater flexibility, giving employees the chance to work in the way that suits them best.
The research, which coincides with findings from the Confederation of British Industry that absenteeism costs the UK economy £17 Billion every year, also predicted that absenteeism would fall by 10% if employees were allowed to work remotely or on the move.
Therefore, a 10% decrease in absenteeism would inject £1.7bn into the UK economy, the company said.
The study also revealed that the average UK business spends £4m on technology each year spread across seven IT suppliers, while their IT departments are said to waste almost six weeks of work maintaining or renewing contracts each year.
And 75% of those surveyed believed that employees would be happier and more productive given the ability to work remotely or on the move
Duncan Higgins, director of product and marketing at Virgin Media Business, said the findings show that there is an opportunity for CIOs to capitalise on.
"But the majority of businesses are still hesitating. Having to deal with loads of different suppliers is turning into a huge turn-off, sometimes making it seem like more trouble than it’s worth," he explained.
"It’s time for businesses to take the plunge with a helping hand from service providers. It’s an opportunity to review the number of suppliers they deal with, identify where services can come together, and then start reaping the rewards."