It’s that time of the financial quarter again, in which Arvato releases its Outsourcing Index – and it’s sent us the release.
There is good news for people serving the public sector, as outsourcing in that area grew to a three year high in 2018. The total value of government deals rose 61% year on year in 2018, with technology and IT spend accounting for 68% of government contracts. IT accounted for £2bn worth of contracts in its own right.
As you might expect from such an emerging field, customer service (BPO) was also very important (and of course there’s overlap), accounting for 43% of all deals signed.
Debra Maxwell, CEO of Arvato UK and Ireland, said: “The government’s focus on technology investment marks an acceleration towards delivering digital by default, and demonstrates that public sector bodies recognise outsourcing as a key strategy to deliver much-needed efficiencies and to boost productivity.
“Our findings show that procurement teams are increasingly moving away from long-term, high-value contracts, choosing instead to access services through new government frameworks, such as G-cloud, to deliver the transformation they need at speed.“