Outsourcing opportunities increase as UK’s northern councils look for services

Robert Gogel, CEO of outsourcing provider Liberata, has coined the term "north-shoring" to describe a possible geographical shift in the outsourcing market to the North West of the UK.

Speaking exclusively to Personnel Today, Gogel said the market was moving out of London. "We are seeing significant economic regeneration in the North, which has thrown up potential contracts, largely within the public sector," he said.

"There are major imbalances within the UK in terms of employment and we have seen the potential to partner with councils in the North West particularly, to regenerate areas with high unemployment," Gogel said.

Liberata, a private equity-backed firm which specialises in public sector services, will create 300 new jobs in Pendle, a former industrial centre in Lancashire, through its new buseness and payment processing centre to supply a contract with Pendle Council. The centre is expected to open towards the end of the month.

In July, the firm also announced a six-year £75m deal with the Learning and Skills Council (LSC) to assist delivery of the Learner Support Programme. and made a commitment to create 300 jobs in Barrow-in-Furness through its Shared Services Centre, which opened in March 2006.

"We are in several open and competitive tendering bids with councils and government bodies in the East Midlands at present," he added.

Last month Richard Cuthbert, chief executive of support services group Mouchel Parkman, pointed out increasing opportunities in northern metropolitan councils for private sector suppliers.