Austin Macauley 08 July 2014

Bigger contracts dominate as public sector outsourcing continues to rise

The rise in outsourcing across the public sector has seen a threefold increase in contracts since 2007 with spending far outstripping that of the private sector.

A total of 585 public sector outsourcing agreements worth £51bn have been awarded in the last two years compared with £30bn in the commercial sector.

The figures come in a report by analysts Information Services Group (ISG), which predicts continued growth in outsourcing in the public sector.

It shows there has been a steady drop in smaller contracts while the number of large contracts continues to rise. Over the last two years local government has accounted for some of the largest public sector contracts. Examples include Oxfordshire County Council, which awarded Carillion a deal worth more than £600m to deliver facilities management and Lancashire County Council, which had a similar sized contract with BT.

Luke Mansell, Partner, ISG, said: ‘The recession and the subsequent focus by the public sector on cost reduction and value for money has driven a renewed interest in outsourcing and its role in helping deliver efficient, cost effective services.

‘While the commercial sector has moved to smaller contracts over the past two years, the public sector has seen a rise in mid-market contracts, mainly as a result of the complexity of the services required and the lack of appetite to utilise cheaper, offshore resources.’

Skills Pipelines: What local government needs to know image

Skills Pipelines: What local government needs to know

Councils and mayors are to be handed a central role in developing skills pipelines for local industries, as the Government unveils what it calls a ‘fundamental change’ to the education system aimed at tackling youth unemployment. Here's what council leaders and officers need to know.
SIGN UP
For your free daily news bulletin
Highways jobs

Solutions Architect

Essex County Council
£51563.0000 - £60662.0000 per annum
Solutions ArchitectPermanent, Full Time£51,563 to £60,662 per annumLocation
Recuriter: Essex County Council

Specialist Senior Educational Psychologist

Essex County Council
£59809.00 - £63638.00 per annum
Specialist Senior Educational PsychologistPermanent, Full TimeSoulbury Scale B from 3 to 5 plus SPA Location
Recuriter: Essex County Council

Family Worker (Link Role) - 12 month FTC

Essex County Council
£33049.00 - £37698.00 per annum + + 26 Days Leave & Local Gov Pension
Family Worker (Link Role)Fixed Term, Full Time£33,049 to £37,698 Per AnnumLocation
Recuriter: Essex County Council

Cleaner

North Yorkshire Council
£13.28 per hour
You will be responsible for the cleaning duties on site including dusting, vacuuming and the cleaning of sanitary fittings. Whitby, North Yorkshire
Recuriter: North Yorkshire Council

Cleaner and Caretaker

North Yorkshire Council
£13.28- £13.92 per hour
We are looking for a motivated individual to provide a combination of caretaking and cleaning services at 2 of our village schools. York, North Yorkshire
Recuriter: North Yorkshire Council
Linkedin Banner