Outsourcing in public sector spikes in Q3

According to the latest research from the Arvato UK Outsourcing Index, local authorities and central government departments procured contracts worth £723 million between July and September 2017.

That means that the public-sector outsourcing market experienced more growth in the three months to September than it managed in the first two quarters of the year combined (£722 million).

According to the findings, the increase in public sector activity means government buyers accounted for 70 per cent of all outsourcing spend in the UK between July and September, with large back-office business process outsourcing deals contributing for the majority of spend, as average contracts values rose to reach £42 million.

In total, deals worth £1.04 billion were agreed across the UK public and private sectors over the three months, representing a six per cent year-on-year rise.

Debra Maxwell, CEO, CRM Solutions UK & Ireland, Arvato, said: “Government spend on transformation has buoyed what is traditionally a more subdued period of the year for the UK outsourcing market. This reflects the continuing pressures government bodies are facing. Delivering meaningful transformation in the back-office is a clear objective for both central departments and councils in terms of freeing up the resources they need to strengthen public facing services.”

The Arvato UK Outsourcing Index is based on an analysis of all outsourcing contracts procured in the UK market during Q3 2017.