TPI, the Information Services Group (ISG) companies, has said that public sector budget pressures are driving an increase in the adoption of outsourcing as a strategy to improve operational excellence in Continental Europe and a wave of contract renegotiations in the United Kingdom.

The number of public sector outsourcing contracts awarded in Continental Europe jumped by more than 70 per cent in the first half of the year, according to data from TPI, the leading independent sourcing data and advisory firm in the world. The public sector’s total contract value (TCV) on the continent grew 40 percent.

For service providers this will mean placing a greater emphasis on forging close working partnerships with public sector bodies. Duncan Aitchison, Partner and President, EMEA, TPI, said: “Understanding the difficult path the government now has to take and negotiating the balance between providing a value proposition, with services that help governments achieve often complex goals in a streamlined way will be key for outsourcers moving forward.”