Research from arvato has revealed that the size of the local government outsourcing market rose from £53 million in 2005 to just shy of £100 million in 2010 during the coalition government’s time in power.

arvato stated that this rapid increase was caused in part by the uptake of shared service arrangements. However, global BPO director Debra Maxwell says that, despite this rise, “adoption of genuine shared services among local council has been relatively low”.

With further cuts to council funding expected from the government’s next spending review later this year, Debra expects councils to embrace outsourcing in previously unchartered territories, in an attempt to find revolutionary new ways of improving efficiencies while maintaining services at the same level.

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