by: Sarah Joson
Friday, February 13, 2015 | Outsourcing News |
According to the UK Outsourcing Index for 2014 created by outsourcing provider Arvato and analyzed by industry specialist NelsonHall, the total IT outsourcing (ITO) contracts closed last year posted a total value of £3.44 billion and 75 percent or £1.05 billion of that is composed of contracts from the utilities and energy sector. Those deals likewise represent the 187% of the year-on-year rise in the sector, from the £373 million spent on all outsourcing deals back in 2013.
The report also found that last year, UK’s outsourcing market was worth £6.65bn - £3.1bn of which comprised closed deals for business process outsourcing orders. In addition to that, hybrid contracts that comprised BPO and ITO arrangements were valued at £109 million.
Infrastructure management was the most outsourced IT service with a total £899 million spend, followed by application management at £772 million, and network management with £485 million.
Other findings in the report also pointed out that deals from the public and private sector being carried out remotely are only 8% of the total £2.49 billion.
According to Debra Maxwell, Managing Director of Arvato UK, people still confuse outsourcing with offshoring, but the study underpins that UK delivery is still crucial in the outsourcing segment since the requirements and needs of customers become more complex.
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