Monday 4th February, 2013

Research by Seymour Pierce, one of the UK’s leading independent investment banks reveals contracts worth over £115,000, with local government contracts making up 63% of public sector outsourcing from 2012. The overall number of contracts awarded by the government has also risen by 7%, and over a four year period the total value has increased from £9.6 billion in 2008 to £20.6 billion in 2012.

The research analysed data from six government departments and found an increase in outsourcing contracts in local government, healthcare and justice. With the coalition seeking to achieve £20bn of cost savings by 2015, room remains for the private sector to extend its reach further, according to Seymour Pierce.  

As quoted in the FT, Caroline de La Soujeole, a Seymour Pierce analyst, said the government had was “in its own words, open for business . . . intent on finding new, efficient ways of delivering services rather than simply cutting [them].”

Ms Soujeole expected to see a consolidation in the industry amid a trend towards larger, multi-service contracts.