William Eichler 24 November 2017

Local government accounts for £22m of outsourcing spend, research reveals

The local government sector accounted for over £20m of outsourcing spend between July and September this year, contributing to a public sector outsourcing spike.

The Arvato UK Outsourcing Index found public sector outsourcing contracts worth £723m were signed in the third quarter of this year - compared with £722m in the first two quarters combined.

The figures, compiled by the business outsourcing partner along with industry analyst NelsonHall, reveal councils account for £22m of the overall figure.

Large back-office business process outsourcing (BPO) deals accounted for the majority of spend. Revenues and benefits, HR and finance and accounting were the most popular functions outsourced across both local and central government.

Debra Maxwell, CEO, CRM Solutions UK & Ireland, Arvato, said: ‘The local government outsourcing market is undergoing a significant change.

‘Rather than the larger scale, long-term partnerships for multiple services, we’re seeing councils focus on procuring smaller contracts for consultancy services and new technology, such as Robotic Process Automation (RPA), to deliver the digital transformation they need with greater flexibility and responsiveness.’

The increase in public sector activity means government buyers accounted for 70% of all outsourcing spend in the UK between July and September.

SIGN UP
For your free daily news bulletin
Highways jobs

Virtual School Advisory Teacher

London Borough of Richmond upon Thames and London Borough of Wandsworth
£43,545 - £52,767 per annum
Virtual School Advisory Teacher
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Professional Services Partnering Manager

Derbyshire County Council
Grade 13 £49,178 - £52,937 per annum
Are you passionate about infrastructure, partnership management and making a real impact? Derbyshire
Recuriter: Derbyshire County Council

Business Architect

Essex County Council
£60049 - £70645 per annum + Hybrid working, Flexible working
Please note this vacancy is available as a fixed term contract or secondment opportunity for up to 12 months.Join a Council Shaping the Future of Pub England, Essex, Chelmsford
Recuriter: Essex County Council

Electrical Manager

Derbyshire County Council
Grade 12 £44,433 - £47,925 per annum
Are you ready to take on a pivotal leadership role in managing electrical systems across Derbyshire’s highway network? Derbyshire
Recuriter: Derbyshire County Council

Senior Service Product Manager

North Yorkshire Council
£47,181 - £51,356 per annum
Do you have experience in product management are looking to build your expertise? Harrogate, North Yorkshire
Recuriter: North Yorkshire Council
Linkedin Banner