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.

For your free daily news bulletin
Highways jobs


Royal Borough of Greenwich
£28470 - £44628 per annum
Building Surveyor or Quantity Surveyor Apprenticeship Career Grade Sc6- PO4 (£28,470 - £44,628)3 or 5 Years (depending on experience) Fixed Term Learn England, London
Recuriter: Royal Borough of Greenwich

Teacher of the Deaf

City of Bradford MDC
Band/Grade MPS / UPS + 1 or 2 SEN
We are seeking to recruit a creative, innovative and experienced Teacher of the Deaf to work in the Support Team for Deaf Children. Bradford, West Yorkshire
Recuriter: City of Bradford MDC

Registration Officer

London Borough of Richmond upon Thames and London Borough of Wandsworth
£26,481 -£37,677
Do you want a fast-paced and varied role? Would you like to help people through some of the most important moments of their lives? Wandsworth, London (Greater)
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Head of Service – Adults Services South, Safeguarding & DoLS

Bolton Council
It is an exciting time to join us as Head of Service for Safeguarding, DoLS and South District. Bolton, Greater Manchester
Recuriter: Bolton Council


Royal Borough of Greenwich
£28,470 - £44,628
Kick-start your career with an apprenticeship based in Royal Borough of Greenwich. Greenwich, London (Greater)
Recuriter: Royal Borough of Greenwich

Partner Content

Circular highways is a necessity not an aspiration – and it’s within our grasp

Shell is helping power the journey towards a circular paving industry with Shell Bitumen LT R, a new product for roads that uses plastics destined for landfill as part of the additives to make the bitumen.

Support from Effective Energy Group for Local Authorities to Deliver £430m Sustainable Warmth Funded Energy Efficiency Projects

Effective Energy Group is now offering its support to the 40 Local Authorities who have received a share of the £430m to deliver their projects on the ground by surveying properties and installing measures.

Pay.UK – the next step in Bacs’ evolution

Dougie Belmore explains how one of the main interfaces between you and Bacs is about to change.