William Eichler 09 February 2017

Council outsourcing deals increase due to tech investment

Spending on IT and technology procurement increased dramatically last year with over £800m of outsourcing deals signed by councils.

According to the Arvato UK Outsourcing Index, council spend on outsourced IT reached £463m in 2016 – a 75% year-on-year increase.

The findings revealed the boost in IT spend contributed to an 8% year-on-year rise in the overall local government outsourcing market in 2016, with contracts signed worth £814m.

There has also been 45% increase in the number of deals procured by local authorities (20 to 29) in 2016, compared with the previous 12 months, according to the Index.

The findings also revealed the average value of agreements signed by councils last year fell by 25%, with contract lengths falling by six months on average over the period.

Business process outsourcing (BPO) provider Arvato and industry analyst Nelson Hall said this points to a shift away from the traditional large, multi-process contracts towards procuring smaller, more focused deals.

The proportion of new work coming into the sector reached 72% of contracts last year from 60% in 2015, with councils focusing procurement on new data centres, end user computing and network and application management.

‘The sustained growth we’re witnessing across the sector reflects the growing pressures on local authorities to transform their operations, cutting costs while providing better services for citizens,’ said Debra Maxwell, Arvato’s CEO of CRM Solutions

‘While technology is already playing a key role through the digital by default agenda, investments in new innovations, such as automation and cognitive systems, are now set to underpin more fundamental change.’

SIGN UP
For your free daily news bulletin
Highways jobs

Pupil and Young Person Supervisor

North East Lincolnshire Council
NJC 3 £25,614 FTE
We are seeking to appoint a Pupil and Young Person Supervisor North East Lincolnshire
Recuriter: North East Lincolnshire Council

Bricklayer

Mansfield District Council
£29,786
We are looking for a suitably qualified tradesperson who must be competent Mansfield, Nottinghamshire
Recuriter: Mansfield District Council

Revenues and Benefits Apprentice

Mansfield District Council
National Minimum Wage rate
The Council’s Revenue and Benefits team are looking for an enthusiastic, motivated and hardworking person to join us as an apprentice. Mansfield, Nottinghamshire
Recuriter: Mansfield District Council

User-Centred Design Apprentice (Service Designer Level 6)

Essex County Council
£28003.0000 - £32944.0000 per annum + + local Gov benefits
User-Centred Design Apprentice (Service Designer Level 6 Apprenticeship)Fixed Term, Full Time£28,003 - £32,944 per annum Location
Recuriter: Essex County Council

Sheltered Housing Officer

The Royal Borough of Kensington & Chelsea Council
£34359 - £35359 per annum
Support residents to live independently in safe, welcoming homes - making every day easier, safer and more connected.Support residents to live indepen England, London
Recuriter: The Royal Borough of Kensington & Chelsea Council
Linkedin Banner