Outsourcing contracts worth £938 million were signed between April and June, up 34 per cent on Q1, according to the Arvato UK Outsourcing Index.
Slough – 5th August, 2019 A rise in government spending saw the UK outsourcing market rebound in Q2 after a quiet first quarter, according to the Arvato UK Outsourcing Index.
The research, compiled by business outsourcing partner Arvato CRM Solutions UK and industry analyst NelsonHall, showed that contracts worth a total of £938 million were signed by UK organisations between April and June, up more than a third (34 per cent) on the previous quarter.
Public sector spending reached £489 million over the three-month period compared with £51 million in Q1, as procurement teams focused on signing contracts to deliver back-office services.
Business process outsourcing (BPO) deals accounted for almost all (98 per cent) of the contracts signed over the period, with customer services, HR and revenues and benefits being the most popular service lines.
Central government departments procured the majority of public sector deals between April and June, according to the findings, signing agreements worth £470 million. Local government buyers were less active over the period, agreeing deals with a total value of £20 million.