Public sector spending more than private on outsourcing

The public sector is spending more than its private counterparts on outsourcing as they look to gain more efficiencies with IT spending

Those offering IT outsourcing should be doing more to pitch their wares to public sector customers with that side of the market much busier than private firms as the government looks to external suppliers to help meet their technology needs.

The public sector has been squeezed by cuts but faces an ongoing need to find efficiencies and use technology as a way of reaching out to citizens online, making it an ideal customer base for outsourcing.

Research from Information Services Group (ISG) indicated that the public sector outpaced private rivals by 46% on the outsourcing front in the third quarter according to the EMEA ISG Outsourcing Index.

“Government organisations are not that different from large corporate firms: both want to save money and operate efficiently,” said John Keppel, partner and president, ISG North Europe.  

“Despite pressure to control spending, governments can’t simply put infrastructure investments aside. Instead, they are relying increasingly on outsourcing to balance the need for efficient, localised services with the need to rein in costs," he added.

In the UK the sweet spot is around business process outsourcing, with those with expertise in pensions, social security, taxation and other e-government web initiatives likely to do well.

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