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Latest NewsHR strategyOutsourcing

UK public sector outsourced services market to boom

by dan thomas 13 Dec 2004
by dan thomas 13 Dec 2004

The UK public sector is set to outsource a further £20bn worth of services over the next three years, a growth of 50 per cent, new research reveals.



The outsourcing market is to grow from just under £45bn this year to more than £67bn by 2006-7, according to research group Kable.



One of the main factors influencing the expected outsourcing boom is the Government’s efficiency agenda to achieve £21.5bn in savings by 2008 and cut more than 80,000 civil service jobs.



Whitehall outsourcing alone could reach £7bn a year “directly as a result” of the Gershon Efficiency Review, the report says.



Karen Swinden, Kable’s head of forecasting, said: “The public sector has been using the private sector to deliver services since the early 1980s and yet, 20 years on, it still outsources only a small part of what it does.



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“Given that the public sector has been set a target of saving £21.5bn a year by 2008, through shared services, business process re-engineering and cutting 100,000 civil service jobs, outsourcing could receive a further boost.”


 

dan thomas

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