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.

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
Q1 2017

Strongest quarter in five years for private sector outsourcing market

Other key findings from Q1 2017 include:

  • The value of deals agreed by UK companies reached £2.42 billion in Q1, the largest private sector spend since Q4 2011
  • Businesses spent £1.65 billion on introducing new technology between January and March
  • All contracts signed in Q1 involve UK delivery
  • Outsourcing deals worth a total of £2.73 billion were agreed in the UK over the period
  • Telecoms businesses accounted for 18 per cent of all contracts signed in Q1
2016 full year review

Customer services dominated UK outsourcing market in 2016, research finds

Other key findings from the 2016 full year review include:

  • Customer service deals represented 17 per cent of UK outsourcing market value in 2016
  • Only four per cent of customer service contracts signed last year to be delivered offshore
  • Outsourcing deals worth a total of £6.2 billion were agreed in the UK over the period
  • Spending across local government increased eight per cent year-on-year in 2016