Outsourcing in the UK reignited in H2 2015

During the first half of 2015, one might have said that outsourcing in the UK has seen better days. Come July, the situation drastically changes, with the government playing a pivotal role in the resurgence of remote work.

By the end of the year, a total of £5.67 billion of UK outsourcing agreements were signed in 2015 but, more importantly, the public sector spend in the second half of 2015 rose 55 per cent, compared to the first half.

Public sector organisations have agreed deals worth £2.31 billion, while the private sector spending lost momentum in the final two quarters, falling 42 per cent to £688 million. According to the new data by arvato, procurement focused on a mixture of HR, document management and multi-scope IT infrastructure agreements.

The report also says that the proportion of outsourced work delivered from the UK is rising, with 6 per cent of deals signed last year being delivered completely offshore. In 2014, that number was at 9 per cent. It was also stressed that there's a lot of new work coming in, with 61 per cent of all contracts signed last year being first-time agreements.

“The surge in activity across the public sector comes as no surprise as the market rallied following the general election,” said Debra Maxwell, CEO, CRM & Public Sector, arvato UK & Ireland. "In addition, last year’s Autumn Statement has presented new challenges to government organisations with many under increasing pressure to find greater efficiency savings.”

“It’s clear from the research findings that an increasing number of departments and authorities are turning to the private sector to help them with the service transformation needed to address the new targets introduced in November’s Spending Review.”