UK government outsourcing tops £6.4 billion and growing

by AF0115 j3 — January 19, 2009—The market for outsourced “bundled” services within UK ‘s Central and Local Government is valued at around £6.4 billion in 2008, according to AMA’s first Facilities Management Outsourcing Central and Local Government Markets 2009-2012.

The publications is specifically focused on outsourced management and delivery of “non-core” services within Central and Local Government.

Key sectors benefiting from investment in recent years, in turn stimulating opportunities for FM providers include the Ministry of Defense, the Police Force, the Prison Service, the Courts Service, Leisure and Cultural Facilities, Social Housing, the Fire and Rescue Services and Central & Local Government Offices, according to the report.

Other areas of opportunity in the public sector over the next few years are likely to arise from the “Building Schools for the Future” program.

While the downturn in the economy is expected to have a negative impact on the growth of the overall FM market, the Central and Local Government sector is due to receive a boost over the short- to medium-term from the Government’s decision to bring forward £3 billion of capital spending to 2009-10 from 2010-11 in order to provide some impetus to the economy. However, this measure will result in lower departmental capital expenditure limits in 2010-11, resulting in more moderate growth in the sector in the medium to longer term even though the overall economy is expected to slowly recover in that period.

Leading FM contractors in the Central and Local Government sector include Serco, Carillion, Land Securities Trillium, Interservefm, Sodexo, Babcock, Morrison, John Laing Integrated Services and Mapeley.

For more information, see the AMA Research Web site.