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.’

SIGN UP
For your free daily news bulletin
Highways jobs

Principal Housing Lawyer - Epping Forest District Council

Essex County Council
Up to £48.50 per hour
Principal Housing Lawyer - Epping Forest District Council Epping, Essex£37.82 PAYE / £48.50 Umbrella Full-Time, Temporary 36 Hours per Week Closing Da England, Essex, Epping
Recuriter: Essex County Council

Part Time Mobile Library Supervisor (HGV Class 2 Driver)

Essex County Council
£25959.00 - £28621.00 per annum + Pro Rata
Part Time Mobile Library Supervisor (HGV Class 2 Driver)Fixed Term, Part Time£25,959 to £28,621 Per Annum, full time equivalentLocation
Recuriter: Essex County Council

Head of Practice Development (Adult Social Care)

City of York Council
City of York Council
Recuriter: City of York Council

Head of Service, Operations (Adult Social Care)

City of York Council
£60,662 to £68,265 plus reviewable market supplement up to £79,480 alongside an attractive benefits package and relocation support.
York is at an important point in the development of our Adult Social Care services. York, North Yorkshire
Recuriter: City of York Council

Pre-Construction Housing Delivery Team Manager

Essex County Council
£550.0000 - £600.0000 per day
Pre-Construction Housing Delivery Team Manager - Harlow District CouncilHarlow District CouncilTemporary, Full Time£550.00 - £600.00 per day/umbrellaL England, Essex, Harlow
Recuriter: Essex County Council
Linkedin Banner