Value of UK public sector outsourcing deals up by 168%

May 19, 2014 9:48 am

A study by Arvato, a Business Process Outsourcing (BPO) provider, has found that 39 new contracts worth a total of £2.1 billion were agreed in the first quarter of 2014, which represents a 65% increase on the first quarter of 2013. Headlines from the index include:

  • BPO represented 71% of deals and £1.3 billion of spend, with IT outsourcing accounting for 29% of deals and £798 million of spend;
  • Three-quarters of contracts were completely onshore deals; and
  • 59% of the services in question were being outsourced for the first time.

The largest contract awarded so far this year was to Serco, a £520 million deal to run the Northern Rail franchise in partnership with Dutch rail operator Abellio, with Capita picking up the second, third and fourth biggest deals by value.

May 19, 2014 9:48 am

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