The value of UK public sector outsourcing contracts increased by 168% year-on-year in the first quarter of 2014, a new study of the outsourcing market has revealed.
According to the first Arvato UK Quarterly Outsourcing Index, the public sector dominated deal activity accounting for 74% of total spend in the first three months of the year. The local government sector alone saw a 58% year-on-year increase in deal values. In contrast, the value of private sector deals decreased by 20% in the same period.
The data was compiled by business process outsourcing (BPO) provider Arvato, in partnership with industry analyst, Nelson Hall. It reveals that 39 new contracts worth a total of £2.1bn were agreed in the period, representing a 65% increase on figures from the first quarter of 2013.