Tuesday 18th August, 2015

According to research by outsourcing provider arvato and industry analyst Nelson Hall, BPO (Business Process Outsourcing) agreements have dominated the UK outsourcing market during the first half of 2015 accounting for 60 per cent of the overall spend.

The UK Outsourcing Index found, across the market, 39 BPO contracts were agreed in both public and private sectors between January and June at a value of £1.4 billion, compared to 31 IT outsourcing (ITO) deals worth £868 million.

According to the findings, public sector organisations spent £1.4 billion on outsourcing agreements, accounting for 60 per cent of the total UK market value for the first six months of 2015.

Outsourcing spend in the sector has been driven by central government, with nine agreements procured in the first half of 2015 at a total value of £581 million. These included five IT outsourcing deals focussed on application management and four BPO contracts.

Public sector healthcare providers also contributed a high proportion of spend, with deals worth £403 million signed between January and June.

Transport firms spent £319 million on outsourcing resulting in the highest total contract value across the private sector.

Debra Maxwell, CEO of CRM & Public Sector, arvato UK, commented: "The strong performance in the public sector is encouraging, and despite the uncertainty before May’s general election, government organisations pressed on with their outsourcing agendas to prepare for the budget and operational challenges that lie ahead."