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Public sector outsourcing 'set to increase'

21 June 2011

The number of public sector bodies outsourcing services is likely to see a significant increase by 2016, according to an expert.

Speaking at the Public Procurement Show in London last week, Colin Cram, managing director of consultancy Marc1, stated that the value of outsourced services in the public sector will reach £120 billion by 2016.

This would represent an increase of £40 million on current levels, yet Mr Cram offered a warning that such projects will not achieve the expected levels of success unless they have been managed properly, reports Supply Management.

He noted that organisations should make sure to outsource a "realistic" amount of work, while taking steps such as ensuring operational risks are correctly accounted for and putting together a coherent overall strategy.

"Local authorities really need to coordinate their demand and plan ahead," he said.

This comes after an Interserve survey from earlier this month suggested that outsourcing levels among local councils will rise by 70 per cent by 2014.

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Categories: Program & Project Management

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