UK dominates public sector outsourcing in Europe

The public sector took 41% of total IT outsourcing in Europe in the first six months of 2013, with most contracts signed in the UK

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.

Research from Information Services Group (ISG) also revealed that, although the actual value of public sector contracts was down 23% to €2.4bn in the six-month period, it was above the average figure for the last five years, of €1.7bn.

The research measures IT contracts worth €4m or more.

“The continued focus on reducing government spending means that public sector bodies have to carefully consider their service delivery options,” said Luke Mansell, director at ISG.  

“Outsourcing can offer these organisations access to a wider range of skills as well as the required lower costs.”

UK public sector organisations are the most mature IT outsourcers. The actual value of contracts in the UK public sector in the six-month period was over five times greater than that of continental Europe.

Due to the maturity of IT outsourcing in the UK public sector, organisations are looking at using multisourcing with numerous suppliers in their IT ecosystem. Digitisation – and the large number of small suppliers this leads to – makes it important that public sector organisations can manage service integration.

 “While the use of outsourcing in the public sector isn’t new, the focus has shifted, with government bodies now using a wider range of best-of-breed providers. The resulting emphasis on service integration and management ensures that the promised benefits are delivered,” added Mansell.

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