U.K. Public Sector Now Largest Outsourcing Market Outside U.S., according to
Latest TPI Index data show government outsourcing in Britain rose 16 percent
LONDON, March 19, 2013
LONDON, March 19, 2013 /PRNewswire/ --Information Services Group (ISG)
(NASDAQ:III), a leading technology insights, market intelligence and advisory
services company, today released ISG Research showing that the U.K. Public
Sector is now the world's largest outsourcing market outside of the United
According to data from the latest EMEA TPI Index, which covers commercial
outsourcing contracts with an annual contract value (ACV) of €4 million or
more, Public Sector ACV in Britain increased 16 percent in 2012 as the
government embraced outsourcing as part of its focus on improving value and
streamlining costs. The Public Sector accounted for 55 percent of total U.K.
ACV, establishing itself as the world's largest outsourcing market outside of
the United States.
Government entities in Great Britain awarded 148 contracts in 2012. That
number has increased 47 percent since 2010 while ACV has declined 12 percent,
indicating a significant long-term rise in the use of multi-sourcing in the
"The Public Sector has recognized that best-of-breed providers offer
specialist knowledge that can derive real value from outsourced services,
value that wasn't possible with the single-provider mega-deals of the past,"
said Luke Mansell, Director, ISG. "As a result of this trend toward
multi-sourcing, Service Integration and Management (SIAM) is on the rise to
ensure contracts deliver value and services are delivered seamlessly."
According to TPI Index data , the U.K. accounted for 80 percent of all Public
Sector contracting activity in Europe, the Middle East & Africa (EMEA) in
2012, a market share that has remained remarkably consistent over time.
"Despite intense downward pressures on public expenditure in most European
countries, it appears that so far only the U.K. is using outsourcing as a key
response to austerity measures," Mansell said. With these programs continuing
to be implemented across EMEA, the evaluation of innovative sourcing methods
to achieve cost optimization and reduce waste is likely to increase. "We're
seeing real innovation in the Public Sector, and this vitality makes the
public sector an exciting space to be involved in."
The TPI Index, presented by ISG, provides a quarterly snapshot of the sourcing
industry for clients, service providers, analysts and the media. For more than
a decade, it has been the industry's authoritative source for marketplace
intelligence related to outsourcing transaction structures and terms, industry
adoption, geographic prevalence and service provider metrics. For more
information, visit http://www.isg-one.com/web/research-insights/tpi-index/.
About Information Services Group
Information Services Group (ISG) (NASDAQ: III) is a leading technology
insights, market intelligence and advisory services company, serving more than
500 clients around the world to help them achieve operational excellence. ISG
supports private and public sector organizations to transform and optimize
their operational environments through research, benchmarking, consulting and
managed services, with a focus on information technology, business process
transformation, program management services and enterprise resource planning.
Clients look to ISG for unique insights and innovative solutions for
leveraging technology, the deepest data source in the industry, and more than
five decades of experience of global leadership in information and advisory
services. Based in Stamford, Conn., the company has more than 800 employees
and operates in 21 countries. For additional information, visit
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SOURCE Information Services Group (ISG)
Contact: Denise Colgan, ISG, +44-1737-371-523, email@example.com; or
Louise Fernley, Cohn & Wolfe for ISG, +44-207-331-5365,
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