NEWS U.K. Public Sector now largest outsourcing
market outside U.S., according to ISG research Latest TPI Index data show government outsourcing in Britain rose16 percent in 2012
I
nformation Services Group (ISG), a leading technology insights, market intelligence and advisory services company, today released ISG Research showing that
the U.K. Public Sector is now the world’s largest outsourcing market outside of the United States. According to data from the latest EMEA TPI Index, which covers commercial outsourcing contracts with an annual contract value (ACV) of €4 million or more, Public Sector ACV in Britain increased 16 percent in 2012 as the government embraced outsourcing as part of its focus on improving value and streamlining costs. The Public Sector accounted for 55 percent of total U.K. ACV, establishing itself as the world’s largest outsourcing market outside of the United States.
Government entities in Great Britain awarded 148 contracts in 2012. That number has increased 47 percent since 2010 while ACV has declined 12 percent, indicating a significant long-term rise in the use of multi-sourcing in the Public Sector. “The Public Sector has recognized that best-of-breed providers offer specialist knowledge that can derive real value from outsourced services, value that wasn’t possible with the single-provider mega-deals of the past,” said Luke Mansell, Director, ISG. “As a result of this trend toward multi-sourcing, Service Integration and
Management (SIAM) is on the rise to ensure contracts deliver value and services are delivered seamlessly.” According to TPI Index data, the U.K. accounted for 80 percent of all Public Sector contracting activity in Europe, the Middle East & Africa (EMEA) in 2012, a market share that has remained remarkably consistent over time. “Despite intense downward pressures on public expenditure in most European countries, it appears that so far only the U.K. is using outsourcing as a key response to austerity measures,” Mansell said. With these programs continuing to be implemented across EMEA, the evaluation of innovative sourcing methods to achieve cost optimization and reduce waste is likely to increase. “We’re seeing real innovation in the Public Sector, and this vitality makes the public sector an exciting space to be involved in.”
The TPI Index, presented by ISG, provides a quarterly snapshot of the sourcing industry for clients, service providers, analysts and the media. For more than a decade, it has been the industry’s authoritative source for marketplace intelligence related to outsourcing transaction structures and terms, industry adoption, geographic prevalence and service provider metrics.
www.isg-one.com/web/research-insights/tpi-index/
PUBLIC SECTOR SUSTAINABILITY • VOLUME 3 ISSUE 3
7
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40