Outsourcing contracts worth £1.61 billion were signed in the UK between July and September – the highest quarterly spend for 12 months – according to the Arvato UK Outsourcing Index.
Slough – 6th November, 2019 A surge in government spending between July and September saw the UK outsourcing market reach a 12-month high after a quiet start to 2019, according to the Arvato UK Outsourcing Index.
Contracts valued at £1.61 billion were signed in Q3, the highest quarterly spend since the same quarter in 2018, with growth of 72 per cent since Q2.
Agreements worth £699 million and £938 million were signed across both the public and private sectors in Q1 and Q2 respectively.
The research, compiled by business outsourcing partner Arvato CRM Solutions UK and industry analyst NelsonHall, revealed that government organisations were behind the rise between July and September, signing contracts worth £1.3 billion over the three-month period, compared with £489 million in Q2 and £51 million in Q1.
Public sector spending was driven predominantly by central government, which was responsible for 97 per cent of total investment, with deals worth £1.26 billion.
Business process outsourcing (BPO) agreements accounted for half (50 per cent) of total central government spending, with HR outsourcing and customer service management the most popular services. Investment reached £637 million over the period, up from £155 million in Q2.