I’ve just been reading the recently published Oxford Economics Report prepared for the Business Services Association “UK outsourcing across the private and public sectors”. If you’re involved with sales and marketing of outsourced services, it’s packed with useful data.
Definition of ‘Outsourcing’
‘Outsourcing’ is one of those words that has slightly different meanings to different people. Oxford Economics define outsourcing as:
‘Outsourced’ services are defined for these purposes as those which satisfy three criteria.
- They are provided by a private sector organisation to a client organisation, whether that client is in the public or private sector.
- They are provided under an agreement involving a degree of delegation of management responsibility.
- They are of a kind more typically provided, or of a kind that would in the past have been more typically provided, by an in-house team of the customer themselves.
Key UK outsourcing facts
From the report, here are some key facts about outsourcing in the UK based on 2010 data:
- Outsourcing revenue across all ‘outsourced’ sectors – including IT, catering, facilities management, employment services, office support, technical consultancy, public services and many more – is in the region of £199 billion.
- That is equivalent to almost 7½% of total economy-wide output.
- The split between customer type by institutional sector is around 64% (£127bn) in the private sector in comparison with 36% (£72bn) in the public sector.
- The £72 billion of provision to the public sector compares with total public sector procurement (of goods and services of all kinds) of £189.8 billion in 2010/11 – almost 38%
- The three biggest service sectors are: IT and data related £38.7bn (19.4%); Employment services £33.9bn (17.0%); Property repair & maintenance £28.1bn (14.1%)
- The UK ‘outsourcing’ sector employs some 3.3 million individuals. That is equivalent to 10½% of all UK workforce jobs, or 12¼% of all employee jobs. In this context, the total outsourced services sector is estimated to employ more individuals than the whole of manufacturing, and also more than financial services and public administration put together.
Read the full report
Click to read the recently published Oxford Economics Report prepared for the Business Services Association “UK outsourcing across the private and public sectors”.
Here’s what to do next
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