The UK outsourcing market has enjoyed some of its strongest performance for several years, according to new figures released today.
The latest Arvato UK Outsourcing Index, revealed that the first six months of 2017 has been the most successful since 2012, with £5.2 billion worth of outsourcing deals in this time.
Financial services companies have accounted for more than half of the total contract value – 55 per cent, or £2.9 billion.
There was also a ‘steep increase in spending by UK businesses’. Companies have signed contracts worth £4.5 billion in H1 this year, equalling to a year-on-year rise of 95 per cent. Q1 was particularly strong, with deals worth £2.5 billion being signed. This was the strongest quarterly private sector spend since Q4 2011.
When it comes to the private sector, IT outsourcing takes the biggest slice of the cake. Here, deals worth £3.8 billion were agreed (up from £1.2bn in H1 2016).
Most popular services include application management and hosting. Arvato concludes that it’s digital transformation that drives the growth for these services.
Debra Maxwell, CEO, CRM Solutions UK & Ireland, Arvato, said: “It’s clear from the research findings that we are yet to see any impact of Brexit on the sector as businesses continue to invest in new technology and transforming their services.”
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