Tory election victory set to spark new outsourcing wave

Written by Colin Marrs on 14 May 2015 in News
News

Outsourcing by the public sector is set to rise further following the election of a majority Conservative government, according to a trade body.

The claim comes from the National Outsourcing Association, which represents both suppliers and buyers of outsourced services in the private and public sectors.

Kerry Hallard, chief executive of the NOA said that outsourcing is expected to rise following a slowdown in the first part of this year due to “uncertainty surrounding the election and lack of faith in a potential Labour government”.

She said: “The NOA believes that this Conservative government will bring some welcome stability to the UK’s outsourcing industry. 

“Service providers will now feel more secure – spending on public sector outsourcing almost doubled to £120bn under the coalition, and that’s a trend we expect to continue over the next five years.

“We expect to see a plethora of new outsourcing deals, both public and private, over the coming months now that the election is over and a secure government has been appointed.”

She also called on the government to fulfil its manifesto pledge to allocate a third of central government procurement to small and medium enterprises.

“The coalition ‘supposedly’ met its 25 per cent target last term, and raising it to 33 per cent would provide a great and much-needed boost for the UK’s smaller service providers,” she said.

The Conservative government must also improve its track record on transparency over public-private contracts, she said.

“Implementing new policies, such as encouraging corporate accreditation for organisations involved in outsourcing, would be a great place to start,” she added.

Shares in large outsourcing companies have jumped since the election with the price of Capita shares up by 10%, and Serco’s up 6%

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