Election prompts steep rise in government outsourcing – study

Combined central and local government outsourcing spend highest since early 2012, according to new research


By Civil Service World

06 Nov 2015

The Conservatives' general election victory was followed by a steep rise in government outsourcing deals, according to new analysis.

The latest Outsourcing Index compiled by business processes firm arvato and analysts at Nelson Hall found that central and local government bodies signed deals worth £2.21bn between July and September of this year. Just £105m worth of deals were signed during the previous period, which included the run-up to May's general election.

The analysis shows a 269% rise in the average value of contracts signed in Q3, with the average length of contracts signed during the period also up 38%.


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Central government departments signed a total of seven contracts – worth £1.73bn – between July and September, with the deals covering areas including telephony, IT and shared services.

According to the firm's analysis, the combined central and local government outsourcing spend over the quarter was the highest recorded since the start of 2012.

Arvato's Debra Maxwell said the "political certainty" of the election result appeared to have had "a positive impact on the outsourcing industry".

"With market confidence returning, organisations across the private and public sectors are continuing to turn to outsourcing partners for the expertise and technology to help them achieve their objectives," she added.

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