Councils signing more outsourcing contracts, figures show

According to the Arvato UK Outsourcing Index, the value of outsourcing contracts signed by UK local authorities in the first half of 2016 increased by 84 per cent.

The data showed the value of outsourcing contracts signed by councils in the first six months of the year increased to £646.9 million, with IT deals representing the largest proportion (61 per cent) of outsourcing deals.

The increase came despite a decrease in the value of public sector spending, to £1.6 billion.

Furthermore, the average deal values rose by 22 per cent and the proportion of new work coming into the sector grew by 72 per cent of contracts in the first half of 2016.

Debra Maxwell, CEO of CRM and Public Sector, Arvato UK & Ireland, said: “The sustained growth in local government outsourcing that we’ve witnessed over the last 18 months has continued in the first half of 2016, reflecting the ongoing pressure on local authorities to adapt and innovate.

“Unsurprisingly, investment in IT continues to be a major feature of contracts, as clients look to private sector partners to help them deliver business transformation in the face of ongoing budget pressures.”