UK public sector outsourcing: heading for a boom or a trickle?

We have been drawn to various media reports over the last few days (for example in the Financial Times and PublicTechnology.net) referring to the huge boom that analysts are expecting in the UK public sector outsourcing market. The analysts quoted, from financial institutions such as HSBC, Jefferies and Liberium Capital, talk of a “huge boom”, say that “contract activity has ramped”, and determine that  “this is as exciting as outsourcing gets”. It’s enough to get even the most cautious of outsourcing company frothing at the mouth.

But just wait a minute. Though we don’t want to completely rain on the fireworks, it’s important to understand exactly what is happening, particularly from an ICT perspective. So here we outline some things to consider before you get too excited.

Ways to access this research