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  • Shared services accounted for £1.2 billion in central government outsourcing since the 2010 Treasury Spending Review, compared to just £58 million during the previous five years

  • £350 million of local government deals signed in Q1 2015, representing almost a quarter of all UK outsourcing spend

  • 2014 saw UK organisations outsource increasingly sophisticated and strategic services, leading to more work delivered onshore

  • The financial services industry was most active outside of the public sector, accounting for £1.1 billion of deals; while outsourcing in energy and utilities increased by 187% – the largest growth of any sector

  • Increasing deal values and buyers negotiating more sophisticated contracts with their suppliers reflect a growing maturity in local government outsourcing

UK quarterly outsourcing index

Welcome to arvato’s UK Quarterly Outsourcing Index – a market research initiative designed to analyse and document outsourcing activity in the UK.

We believe that our research will help shine a light on the contribution outsourcing makes to the UK economy – from the millions of jobs it sustains to the technical innovations it helps launch and the cost savings it delivers for a large number of organisations, public and private.

The arvato UK Quarterly Outsourcing Index is compiled in partnership with leading BPO and IT outsourcing research and analysis firm Nelson Hall. The research is based on an analysis of outsourcing contracts completed each quarter.

research findings

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05/08/2015

major growth in public sector shared services since 2010 spending review

Other key findings from Q2 2015 include:

  • Shared services accounted for £1.2 billion in central government outsourcing since the 2010 Treasury Spending Review, compared to just £58 million during the previous five years
  • Outsourcing of shared services also increased in local government during the same period with deal value doubling to £97.9 million
  • Value of outsourced revenues and benefits contracts rises by 27 per cent, with £239 million spent in total

Read the full Q2 2015 index here ›

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18/05/2015

local government outsourcing hits five quarter high

Other key findings from Q1 2015 include:

  • £350 million of local government deals signed in Q1, representing almost a quarter of all UK outsourcing spend
  • The public sector accounted for 65 per cent of the total value of contracts in Q1
  • Average length of local government contracts rises 70 per cent year-on-year
  • 58 per cent of contracts were first-time outsourcing deals
  • 97 per cent of agreements involve onshore delivery

Read the full Q1 2015 Index here ›

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09/02/2015

just 8% of outsourcing deals go offshore in 2014

Other key findings from our 2014 full-year review include:

  • £6.65 billion of UK outsourcing deals agreed in 2014
  • 55.5% of contracts are first-time outsourcing deals, rising from 33% in 2013
  • Average local government contract values up 15% year-on-year
  • Financial services industry responsible for £1.1 billion of deals
  • 187% growth in value of energy and utilities contracts to £1.072 billion
  • 15% year-on-year growth in total value of IT Outsourcing to £3.44 billion

Read the full 2014 Index here ›

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06/11/2014

UK Outsourcing Index finds growth in HR contracts

Other key findings from Q3 2014 include:

  • HR accounts for a quarter of all outsourcing deals signed in 2014 so far, totalling £93 million
  • Overall 25 BPO and ITO deals, worth £421 million, were signed July - September 2014
  • Third consecutive quarter of growth in percentage of first time outsourcing deals - 64% in Q3
  • 24% of contracts were extensions or expansions of existing deals
  • 76% of all contracts to be delivered onshore in UK – up from 60% in the same period last year
  • Public Sector, including healthcare, central and local government markets represents the majority of spend, with £108 million coming from local government

Read the full Q3 2014 Index here ›

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07/08/2014

UK manufacturing sector spends 132% more on business and IT outsourcing in 2014

Other key findings from Q2 2014 include:

  • 66% of all outsourcing contracts in the manufacturing sector were first time agreements
  • In local government, the outsourcing market continues to mature as 75% of all agreements were renewals, extensions or supplier changes
  • Nearly 95% of the volume of deals in Q2 came from the private sector with telecoms & media, financial services and energy & utilities totalling 70% of Q2 spend (£513m)
  • Business Process Outsourcing (BPO) deals were most in demand (52%) with HR outsourcing remaining the most popular BPO service line, clocking up eight deals in Q2
  • Overall, the value of outsourcing deals in Q2 totalled £734m from 34 contracts

Read the full Q2 2014 Index here ›

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19/05/2014

value of UK public sector outsourcing deals up by 168% in Q1 2014

Other key findings from Q1 2014 include:

  • £1.5bn of public sector deals agreed
  • 65% year-on-year rise in total outsourcing spend
  • 75% of contracts are onshore agreements
  • More than half of contracts are first-time outsourcing deals

Read the full Q1 2014 Index here ›