William Eichler 01 August 2016

Outsourcing contracts signed by councils on the rise

Outsourcing contracts signed by councils on the rise image

The value of outsourcing contracts signed by UK local authorities in the first half of 2016 increased by 84%, despite a dip in the value of overall public sector spend.

The Arvato UK Outsourcing Index has revealed the value of outsourcing contracts signed by councils in the first six months of this year increased to £684.9m, with IT deals represented the largest proportion of outsourcing deals (61%).

This was despite a decrease in the value of public sector spending to £1.6bn.

The research also recorded a 50% increase in the number of deals procured by local authorities (from 12 to 18) between January and June, compared with the same period last year.

The average deal values rose, according to the Index, by 22% and the proportion of new work coming into the sector grew from 50% of contracts in the first half of 2015 to 72% during the same period of 2016.

Overall, UK outsourcing contracts worth £3.91bn were signed in H1 2016. This represents a 19% year-on-year rise.

Debra Maxwell, CEO of CRM and Public Sector, arvato UK & Ireland, said: ‘The sustained growth in local government outsourcing that we’ve witnessed over the last 18 months has continued in the first half of 2016, reflecting the ongoing pressure on local authorities to adapt and innovate.

‘Unsurprisingly, investment in IT continues to be a major feature of contracts, as clients look to private sector partners to help them deliver business transformation in the face of ongoing budget pressures.’

SIGN UP
For your free daily news bulletin
Highways jobs

SEN Caseworker Officer

North Yorkshire County Council
£29,636 - £32,029 per annum pro rata
The ideal candidate will have experience of working with children and young people with SEND or additional needs in children’s services including... Scarborough, North Yorkshire
Recuriter: North Yorkshire County Council

Speech and Language Therapist - Personalised Learning Pathways

North Yorkshire County Council
£32,029 - £34,788 per annum pro rata
This is an exciting opportunity to be part of the PLP programme which supports young people (16-25) to develop and progress through... North Yorkshire
Recuriter: North Yorkshire County Council

Senior Social Workers x3 - FS&P - Basildon

Essex County Council
£39164 - £47404 per annum + + Free Parking & Excellent Package
We are looking for an experienced, motivated and creative social worker to join our team. England, Essex, Basildon
Recuriter: Essex County Council

Deputy Chief Executive & s.151 Officer

Wychavon District Council
package to £90k
This is an exceptional career development opportunity, and the perfect role for a talented public service leader with ambition. Worcestershire
Recuriter: Wychavon District Council

Senior Practitioner - Family Support & Protection

Essex County Council
Up to £237 per day + Umbrella
Managing a defined caseload, the social worker is responsible for working effectively with children, young people and families/carers to achieve positive change and improved outcomes. England, Essex, Basildon
Recuriter: Essex County Council

Public Property

Latest issue - Public Property News

This issue of Public Property examines how how flexible workspaces can lead the way in regeneration for local authorities, Why local authority intervention is key to successful urban regeneration schemes and if the Government’s challenge of embracing beauty is an opportunity for communities.

The March issue also takes a closer look at Blackburn with Darwen Council's first digital health hub to help people gain control over health and care services.

Register for your free digital issue