IT contractors may be required to help the Ministry of Defence (MoD) address data security concerns.

The permanent secretary of state at the MoD Sir Bill Jeffrey has said that the department must do more to protect itself from data loss and cyber crime.

Although significant improvements have been made in this area, increasing the number of encrypted laptops in use from 27.6 per cent of the total to 70.2 per cent inside 12 months means more must be done, Sir Bill said in a resource report.

"In addition to the risks posed by data losses and information infrastructure, the risk presented to the department by threats to cyber security is of increasing concern," he said.

Meanwhile, other organisations such as the BBC manage to encrypt all their laptops and portable devices, Sir Bill pointed out.

It was recently announced following a Freedom of Information request that MoD staff had lost or had stolen 340 laptops worth over £600,000 in the last two years.