Feeds

Transformation feeds outsourcing surge

New contracts and renewals to see 10% increase

New hybrid storage solutions

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.

Providing a secure and efficient Helpdesk

More from The Register

next story
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
Show us your Five-Eyes SECRETS says Privacy International
Refusal to disclose GCHQ canteen menus and prices triggers Euro Human Rights Court action
Heavy VPN users are probably pirates, says BBC
And ISPs should nab 'em on our behalf
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
Former Bitcoin Foundation chair pleads guilty to money-laundering charge
Charlie Shrem plea deal could still get him five YEARS in chokey
NORKS ban Wi-Fi and satellite internet at embassies
Crackdown on tardy diplomatic sysadmins providing accidental unfiltered internet access
'Serious flaws in the Vertigan report' says broadband boffin
Report 'fails reality test' , is 'simply wrong' and offers ''convenient' justification for FTTN says Rod Tucker
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
Top 5 reasons to deploy VMware with Tegile
Data demand and the rise of virtualization is challenging IT teams to deliver storage performance, scalability and capacity that can keep up, while maximizing efficiency.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.