Feeds

Transformation feeds outsourcing surge

New contracts and renewals to see 10% increase

Secure remote control for conventional and virtual desktops

Public sector spending on ICT and business process outsourcing (BPO) is ready for a surge in 2008, according to research from Kable.

New contracts and renewals are set to produce a 10 per cent increase in business to £5.79bn in 2008, followed by growth rates of 6-8 per cent over the next four years, to take the total to £7.53bn in 2012.

In its latest report, ICT and business process outsourcing in the UK public sector to 2012, Kable says that while 2007 is a slack year for new business, it is proving critical for beginning the sales and buying process for future outsourcing.

The near term growth will be driven by major national projects in the security area and by the move to outsourcing in local government.

In the longer term, criminal justice is expected to exert a strong influence as more police forces look to outsourcing. Indeed, the sector will surpass healthcare as the third most important in the market, accounting for £1.26bn in 2012.

Central government will remain the largest sector, however, with business totalling £2.04bn at the end of the period, with local government second with £1.79bn.

The campaign for the transformation of public sector business is also expected to create a big shift in the balance between the outsourcing of ICT functions and business processes. The former is much more important this year, accounting for £3.71bn of business against £1.56bn for BPO. But up to 2012 the growth rates for ICT will be more modest, taking it to £4.48bn against £3.04bn for BPO.

The report says the exceptionally high growth rates in transformational outsourcing will not be sustained as the market matures, but that in the longer term there will be further moves towards shared services, particularly in central government.

Kable associate director Seyi Agboola commented: "This is a cyclical market and things are relatively quiet compared to how they have been and how they will be. So the decisions that suppliers take over the next two years will determine the next generation of leaders in this market."

Anyone interested in obtaining a copy of the report can contact Rachel Colby on 020 7061 3240 or rachel.colby@kable.gov.uk.

This article was originally published at Kablenet.

Kablenet's GC weekly is a free email newsletter covering the latest news and analysis of public sector technology. To register click here.

Intelligent flash storage arrays

More from The Register

next story
Scrapping the Human Rights Act: What about privacy and freedom of expression?
Justice minister's attack to destroy ability to challenge state
DVLA website GOES TITSUP on day paper car tax discs retire
Welcome to GOV.UK - digital by de ... FAULT
WHY did Sunday Mirror stoop to slurping selfies for smut sting?
Tabloid splashes, MP resigns - but there's a BIG copyright issue here
Hey Brit taxpayers. You just spent £4m on Central London ‘innovation playground’
Catapult me a Mojito, I feel an Digital Innovation coming on
EU probes Google’s Android omerta again: Talk now, or else
Spill those Android secrets, or we’ll fine you
Google hits back at 'Dear Rupert' over search dominance claims
Choc Factory sniffs: 'We're not pirate-lovers - also, you publish The Sun'
EU to accuse Ireland of giving Apple an overly peachy tax deal – report
Probe expected to say single-digit rate was unlawful
Inequality increasing? BOLLOCKS! You heard me: 'Screw the 1%'
There's morality and then there's economics ...
While you queued for an iPhone 6, Apple's Cook sold shares worth $35m
Right before the stock took a 3.8% dive amid bent and broken mobe drama
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.