Organisations in the IT sector are failing to exploit the business benefits of internet technologies in the workplace, with only a small proportion using Web 2.0 tools such as online applications, according to research by the Chartered Management Institute (CMI).

Qualitative and quantitative research from the CMI released today claims that, despite enthusiasm for web-based tools among employees in the sector, companies have been slow to react.

Sixty per cent said that they monitor employee internet access, 55 per cent block "inappropriate" web sites, and 12 per cent impose curfews on internet usge, according to the research.

This is despite figures which suggest that most employees use the internet for professional development and research, or simply for "doing work".

"Younger managers are growing up with much greater familiarity with technology, and are comfortable using technologies such as mobile video, TV-on-demand or information services such as Google and Wikipedia," said Jo Causon, director of marketing and corporate affairs at the CMI.

"Quite clearly, organisations need to harness the comfort levels these individuals have with internet-based resources, because failure to do so will lead to frustration and the loss of top talent at best, or worse, an open door for competitors to build advantage through a better equipped and enabled workforce."

In addition, while 95 per cent of organisations surveyed use email and 74 per cent have intranets, only 36 per cent use web-based applications such as Google Docs, and just 24 per cent make use of webcasts.