Public sector IT outsourcing is big enough for ISG now

The public sector is spending more and more on IT services as it tries to cut costs. This is changing how suppliers operate.

I spoke to John Keppel, president Northern Europe at ISG, this week. The company acquired TPI a while back and along with it those in-depth reports on outsourcing, formerly known as the TPI Index.

He told me that for the first time in the report’s history there is going to be one focused specifically on the public sector. “For the first time we are going to do a full year report on global public sector outsourcing. It has become more important to the market and to us.”

ISG has included figures on IT outsourcing for the European public sector but never had a dedicated report on global public sector outsourcing.

According to ISG public sector accounted for 41% of total IT outsourcing in the Europe, Middle East and Africa region in the first six months of 2013 with most contracts signed in the UK.

It will be interesting to see how other countries compare to the UK. It is tough enough outsourcing civil service jobs in the UK so it would be interesting to see the levels of IT outsourcing by other governments.