Laura Sharman 02 August 2018

Council outsourcing falls by nearly £60m in last year, figures show

Council outsourcing falls by nearly £60m in last year, figures show image

Outsourcing contracts signed by local councils fell by £59m in the first six months of this year, compared to the same time period in 2017, new figures reveal.

The Arvato UK Outsourcing Index found contracts worth £77m were signed by local government buyers between January and June of 2018, down from £136m in the first half of 2017.

However, the total value of public sector spending on outsourcing contracts was up 39% year-on-year. The Index shows that IT outsourcing accounted for more than three quarters (795) of the public sector spend.

Debra Maxwell, CEO, CRM solutions UK & Ireland, Arvato, said: 'The public sector market is showing signs of recovery as government organisations take the brakes off the tendering process.

'More than two thirds (68%) of contracts signed across the sector this year represent new relationships, showing outsourcing remains a key strategy for delivering new technologies, such as cyber security and automation, to drive efficiency and service improvements.'

Find out why outsourcing is becoming a far more perilous market for local government to invest in.

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AI: A game changer

Paul Shepherd offers his expertise on why adopting AI will not just improve customer service response times for councils, but will also lower admin costs and improve worker job satisfaction.
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