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

Highways Inspection Officer

The Royal Borough of Windsor & Maidenhead
£32,962 - £36,791pa
We have an exciting opportunity for a Highways Inspection Officer to join us! Maidenhead, Berkshire
Recuriter: The Royal Borough of Windsor & Maidenhead

Driver

North Yorkshire Council
£12.85 - £13.47 per hour
The team comprises approximately 350 drivers and passenger assistants that operate at locations throughout North Yorkshire. Northallerton, North Yorkshire
Recuriter: North Yorkshire Council

Passenger Assistant Medical

North Yorkshire Council
£27,254- £29,064 pro rata per annum
We are looking for caring, flexible, and committed people to help us provide this transport. Northallerton, North Yorkshire
Recuriter: North Yorkshire Council

Social Worker - Children's Assessment and Safeguarding

North East Lincolnshire Council
Salary from ASYE level £36,363 up to £46,142
We’re looking for inspirational social workers North East Lincolnshire
Recuriter: North East Lincolnshire Council

Child Care Officer - Children's Homes and Supported Accommodation

North East Lincolnshire Council
£28,142 PLUS additional allowances for weekend working
Can you make a house feel like a home in a team that feels like a family? North East Lincolnshire
Recuriter: North East Lincolnshire Council
Linkedin Banner