Industry news

IT outsourcing to private sector doubles

Outsourcing of public services to private and voluntary providers, including IT firms, has almost doubled in the last ten years, according to a new study.

The Financial Times reports a government-backed report from economist DeAnne Julius has revealed the outsourcing sector is now worth nearly £80 billion and makes up six per cent of gross domestic product.

According to the paper this means it is bigger than the motor, electricity and pharmaceutical industries, among others, and is larger than had been predicted.

Quoted by the paper, business secretary John Hutton said: "UK companies and the services they deliver are of increasing global interest in this growth market."

He added the government was looking to "do all it can" to help UK firms succeed in domestic and foreign markets.

Last month Information Week reported Proctor and Gamble had signed a multi-million pound outsourcing deal with BT to provide IT services.