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

Assistant Service Manager

London Borough of Richmond upon Thames and London Borough of Wandsworth
£48,873 - £59,220
Assistant Service Manager<... Wandsworth, London
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Educational Psychologist - Main Grade

Essex County Council
£43483.0000 - £63394.0000 per annum
Essex County Council is seeking passionate and dedicated Main Grade Educational Psychologists to join our quadrant-led teams. England, Essex, Chelmsford
Recuriter: Essex County Council

Senior Product Support Analyst

Essex County Council
£33512.0000 - £39425.0000 per annum
Senior Product Support AnalystPermanent, Full Time£33,512 to £39,425 per annum Location
Recuriter: Essex County Council

Cycle Fleet Operator

Essex County Council
Up to £25959.00 per annum
Cycle Fleet OperatorFixed Term, Full Time£25,959 per annumLocation
Recuriter: Essex County Council

Cycle Fleet Operator

Essex County Council
Up to £25081.00 per annum
Cycle Fleet OperatorFixed Term, Full Time£25,081 per annumLocation
Recuriter: Essex County Council
Linkedin Banner