Outsourcing surge predicted

8 January 2010

8 January 2010 | Amy Rowe

A dramatic increase in UK public sector outsourcing is expected this year, according to the National Outsourcing Association (NOA).

Following conversations with about 350 of its members, who are outsourcing providers, the association predicts a surge in government clients outsourcing services.

The NOA said the sector would be forced to explore extensive changes to cut costs and improve the “colossal” budget deficit.

NOA chairman Martyn Hart told SM savings made through outsourcing services, including maintenance and HR, could contribute up to 15 per cent of the government’s revised savings target of £12 billion.

But Hart believes outsourcing projects will take time. “Government will find this particularly difficult as procurement is so longwinded. This is made harder by EU procurement laws and health and safety,” he said.

Also among the NOA’s predictions for 2010 is a nationwide return to environmental concerns, which it said had been “forgotten” in the recession. 

The association said outsourcing providers would need to understand the Carbon Reduction Commitment, an emissions trading scheme the UK government is introducing to cut greenhouse gas emissions by 1.2 million tonnes of carbon per year by 2020.

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