arvato has joined up with analyst firm NelsonHall to produce a UK Quarterly Outsourcing Index on the value of deals completed, and Q1 2014 results show the value is significantly on the up, with a 168% increase on Q1 2013 results.

The Index reveals that 39 new contracts worth a total of £2.1bn were agreed in the period, representing a 65% increase on figures from the first quarter of 2013. Three quarters (75%) of the contracts were completely onshore agreements, with all work being delivered in the UK. In more than half (59%) of deals, the services in question were being outsourced for the first time, representing new work for businesses in the sector, rather than contract renewals or work transferring between vendors.

According to the Index, the public sector dominated deal activity accounting for 74% of total spend in the first three months of the year. The local government sector alone saw a 58% year-on-year increase in deal values. In contrast, the value of private sector deals decreased by 20% in the same period.

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