by Brianna Crandall — October 4, 2013—Information Services Group (ISG), a Stamford, Connecticut-based provider of technology insights, market intelligence and advisory services, recently released research showing that the value of public sector outsourcing in Europe, the Middle East and Africa (EMEA) fell 23 percent in the first half of 2013 but remained strong, easily surpassing its average during the previous five years.
The 2Q13 EMEA ISG Outsourcing Index, which measures outsourcing contracts with an annual contract value (ACV) of 4 million or more, recorded one of the strongest first half performances in the Public Sector to date, with government outsourcing accounting for 41 percent of all contracts awarded in the region. Public sector outsourcing ACV totaled 2.4 billion for the first half of 2013, a decline from 3.1 billion in the first half of 2012.
“The continued focus on reducing government spending means that public sector bodies have to carefully consider their service delivery options,” said Luke Mansell, Director, ISG. “Outsourcing can offer these organizations access to a wider range of skills as well as the required lower costs.”
The ACV of public sector contracts in the United Kingdom was more than five times greater than that of continental Europe.
Mansell continued, “While the use of outsourcing in the public sector isn’t new, the focus has shifted, with government bodies now using a wider range of best-of-breed providers. The resulting emphasis on service integration and management ensures that the promised benefits are delivered.”
