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UK outsourcing is up or down, depending on who you read

The effect of Brexit, which hampered the UK economy when the implications first started to set in, has retreated and the outsourcing sector is starting to recover again. That’s what Channelwebsays and we’ve no reason to doubt it – at least until we look at Computer Weekly, which says the outsourcing market is taking a battering.

Need we add that they both take their data from the same report – the latest from ISG?

The actual announcement of the figures is, as you might expect, a little more nuanced than “it’s doing well” or “it’s not doing so well”. Some figures from the official release say: “Globally, third-quarter ACV for the combined market grew 19 percent, to €9.4 billion. Demand for traditional sourcing stagnated as global ACV remained flat at €4.8 billion. As-a-service ACV, however, continued to reach new heights, up 47 percent, to €4.6 billion. ”

So as might be expected, the new and up to date is growing but the older stuff is indeed stagnating. The release also makes the point that continuing uncertainty about Brexit makes it difficult to say whether there’s a general overall improvement or not.

Our best guess is that markets are indeed holding back and buying only from necessity. A glance at the weekend’s papers in the UK confirms that people who know about these things aren’t at all sure the British prime minister won’t be facing a vote of no confidence by the end of the week. Our best guess says she won’t, because we’ve heard this too often, but that sort of uncertainty – which would then potentially remove the UK’s chief executive and therefore de facto lead on Brexit – isn’t going to help anyone

Whatever your feelings about Brexit, a decision of some sort would have to be better than the current constant fudge.

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