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

Team Manager

Durham County Council
Grade 14 - £50,269 - £54,495
Two vacancies has arisen within Adult and Health Services for a Team Manager working in the Chester Le Street Health Centre/Derwent Clinic and Enterpr Durham
Recuriter: Durham County Council

Commercial Waste Account Manager

Durham County Council
£38,220 - £41,771
Refuse and Recycling Services are looking for a Commercial Waste Account Manager to join their team   WHAT IS INVOLVED? Working with a significant deg Peterlee
Recuriter: Durham County Council

Head of Drama Teacher

Durham County Council
£32,916- £51,048 + 8,611
Head of Drama Teacher MPS-UPR + TLR2c- £32,916- £51,048 + 8,611 Required to start 01/09/2026.   The performing arts is central to life at Belmont Comm Durham
Recuriter: Durham County Council

Human Resources Officer Advice and Support

Durham County Council
£35,412 to £39,152 p.a. pro rata (Grade 9)
  This is an exciting opportunity to join the HR Advice and Support service supporting the delivery of professional HR advice and support in conjuncti Spennymoor
Recuriter: Durham County Council

Senior Product Manager - Social Care

Essex County Council
£63323.0000 - £74497.0000 per annum
Senior Product Manager - Social CareFixed Term, Full Time£63,323 to £74,497 per annumLocation
Recuriter: Essex County Council
Linkedin Banner