Is there a worrying dependence on public sector for outsourcing suppliers?

Interesting survey from sourcing consultancy TPI. It found that businesses outsourced €2.2bn less in terms of value.

A total of €3bn was spent on outsourcing by UK businesses in the first half of this year compared to €5.2bn in the first half of 2009. Total spending was €12bn in the UK with a massive 75% of this in the public sector.

The UK public sector outsourcing spend is very important to the EMEA region as well. It accounts for 86% of EMEA public sector outsourcing.

This would appear worrying because the UK government is planning massive cuts.

But maybe not. I was talking to a contact of mine last week and he said he had meetings with government officials and the impression he got is that anything in he public sector that can be outsourced will.

And Francis Maude does to be clearing the way for massive outsourcing with prosed legislation to reduce civil service redundancy benefits as well as other changes to rules concerning outsourced workers in the public sector. 




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