Businesses signed deals worth £648 million between January and March, according to the Arvato UK Outsourcing Index
Slough – 13th May, 2019 The private sector dominated the UK outsourcing market in Q1, with contracts worth £648 million procured between January and March, according to the Arvato UK Outsourcing Index.
The research, compiled by business outsourcing partner Arvato CRM Solutions UK and industry analyst NelsonHall, showed that spending by businesses accounted for 93 per cent of the total contract value procured in the UK over the period.
Customer service contracts accounted for a third of private sector deals, according to the research. The majority (80 per cent) were procured for omnichannel customer relationship management (CRM) systems, with the remainder focused on specialist financial customer service and billing services.
The findings show that energy and utilities firms were the most active buyers of customer services in Q1, accounting for 60 per cent of the total volume deals signed.
Business spending on outsourcing was dominated by telecoms and financial services firms, with companies in these sectors agreeing deals worth £446 million and £104 million respectively.
Overall, outsourcing contracts worth £699 million were signed in Q1 across the UK market, according to the research. IT outsourcing (ITO) accounted for contracts worth £601 million between January and March, representing, 86 per cent of the total spend, with deals for business process outsourcing (BPO) amounting to £97 million.
The total value of contracts signed between January and March represents a slower start to the year when compared with the same period last year, with the total deal value falling by 15 per cent.