Public Sector Outsourcing Spend Reached £1.42 Billion Between July And September As Government Bodies Ramped Up Procurement For IT And Tech Services, According To The Arvato UK Outsourcing Index.
Slough – 6th November, 2018 The UK public sector outsourcing market recorded its highest quarterly performance since 2016 in the third quarter of 2018, as government departments focused on securing deals for IT and tech services, according to the Arvato UK Outsourcing Index.
The research, compiled by business outsourcing partner Arvato and industry analyst NelsonHall, found that the strong performance of the public sector pushed the overall UK outsourcing market to an 18-month high between July and September. Organisations signed contracts worth £2.93 billion, up from the £1.05 billion recorded in the same period last year, according to the findings.
Government organisations signed contracts with third parties worth £1.42 billion over the three-month period, with ITO agreements accounting for 90 per cent (£1.27 billion) of the total spend.
Central departments dominated the government ITO spend in Q3, signing deals worth £1.26 billion. Buyers focused on procuring deals for application management, infrastructure and cloud computing services secured through the G-Cloud framework.
The research revealed the number of deals signed by government bodies rose sharply in Q3 with 48 deals signed between July and September, more than double the number agreed in the first six months of the year (22). Overall, this represented a drop in average public sector deal value from £38.8 million to £29.6 million year-on-year.
The local government market accounted for just £1 million of public sector spend in the third quarter of 2018.