UK Quarterly Outsourcing Index

Welcome to Arvato’s UK Quarterly Outsourcing Index – a market research initiative designed to analyse and document outsourcing activity in the UK.

We believe that our research will help shine a light on the contribution outsourcing makes to the UK economy – from the millions of jobs it sustains to the technical innovations it helps launch and the cost savings it delivers for a large number of organisations, public and private.

The Arvato UK Quarterly Outsourcing Index is compiled in partnership with leading BPO and IT outsourcing research and analysis firm Nelson Hall. The research is based on an analysis of outsourcing contracts completed each quarter.

Q1 2018

UK outsourcing market dominated by financial services and retail business in Q1

Other key findings from Q1 2018 include:

  • Financial services firms accounted for 51 per cent (£363 million) of the total contract value procured in the UK in Q1
  • Retail companies signed contracts worth £140 million in the first quarter of this year
  • Customer services was the most popular BPO service line procured between January and March, accounting for £152 million (20 per cent of total contract value)
  • Market activity in Q1 represents a slowdown from what was a record year for the outsourcing sector in 2017
2017 full year review

Private sector outsourcing market hits three-year high

Other key findings from the 2017 full year review include:

  • The total value of private sector deals increased by 36 per cent year-on-year in 2017
  • Investment in technology accounted for more than three quarters (77 per cent) of the total business spend, with contracts worth £3.82 billion
  • Outsourcing agreements worth £6.74 billion were agreed in the UK last year, up nine per cent year-on-year
  • The value of contracts signed by financial services firms more than trebled over the period, reaching £3.26 billion in 2017 from £826 million the previous year
Q3 2017

Public sector outsourcing spikes in Q3 2017

Other key findings from Q3 2017 include:

  • Public sector outsourcing contracts worth £723 million signed in Q3, compared with £722 million in the first two quarters of 2017 combined
  • A rise in Business Process Outsourcing (BPO) was behind the growth, as government decision makers focused on transforming the back-office
  • Overall, outsourcing contracts worth £1.04 billion were signed in the UK between July and September, representing a six per cent year-on-year rise in deal value
Q2 2017

Financial services sector drives UK outsourcing to record period

Other key findings from Q2 2017 include:

  • Outsourcing deals worth £5.2 billion were agreed in the UK between January and June 2017, up 23 per cent year-on-year
  • UK private sector accounted for the majority of outsourcing spend in H1, signing contracts worth £4.5 billion
  • Financial services was the most active sector, agreeing deals worth £2.9 billion in the first six months of the year, up from £428 million in H1 2016
  • The number of deals signed by energy and utilities firms grew by 20 per cent year-on-year between January and June