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

Social Worker – Family Assessment & Support Team (FAST)

North Yorkshire Council
£38,220 - £42,839
Our Family Assessment and Support Teams work with children, young people and the families who are Children in Need and in need of Protection. Ripon, North Yorkshire
Recuriter: North Yorkshire Council

Transformation Lead

The Royal Borough of Kensington & Chelsea Council
£53076 - £54076 per annum
Bring your children's social care knowledge to lead digital transformation and help shape better systems, processes and services for practitioners, ch England, London, City of London
Recuriter: The Royal Borough of Kensington & Chelsea Council

Referral Taker

Gloucestershire County Council
£28,142 - £29,540 per annum
Are you an experienced Adult Social Care Administrator looking for an opportunity to develop your career? Gloucestershire
Recuriter: Gloucestershire County Council

Floor Layer

Durham County Council
£36,040 p.a. (Made up of £24,027 salary plus £12,013 p.a Interim Operational Allowance)
Durham County Council have an exciting opportunity for the role of a permanent Floor Layer working within Corporate Property and Land, Strategic Facil Durham
Recuriter: Durham County Council

Headteacher

Durham County Council
£67,898 to £78,702
Permanent Contract - Full Time Required to start January 2027 N.O.R. 187 plus nursery (group 2).   The Governors seek to appoint a committed, experien Peterlee
Recuriter: Durham County Council
Linkedin Banner