A 16-percent increase in commercial outsourcing contracts from the government, valued at Ä4 million (£3.4 million) or more, was seen last year, according to Information Services Groupís (ISG) EMEA TPI Index. More than half (55 percent) of outsourcing deals from the government sector last year - worth Ä4 million and above - are from public sector accounts.
Meanwhile, ISG Director Luke Mansell said more from the public sector are recognizing the advantages of multi-sourced deals by selecting several niche-based providers that are identified to excel and contribute more to organizations, rather than contracting large deals with a single provider. Moreover, this prompted service integration and management to increase as well.
One of the key processes subcontracted by the public sector is the Work Programme of the Department for Work and Pensions. It aims to provide jobs to the unemployed - through 18 prime providers. Other processes include procurement, IT and HR services subcontracted by Barnett Council.