Porge’s Public Sector Outsourcing Trends 2018/19 reviews English councils’ spend on private sector providers across five markets: Health & Social Care, Buildings, Highways & Transport, ICT & BPO and Waste & Environment.
Highways & Transport: Council spend on outsourced Highways & Transport services has risen by 3.5% in 2018/19 to £6.15Bn. The highest spending council was Essex County Council. English councils spent £348M with Balfour Beatty, now the top supplier over Amey.
ICT & Business Process Outsourcing (BPO): Spend on outsourced ICT & BPO services increased for the first time in five years to £2.3Bn. The greatest increase in spend has been on background office services. Birmingham City Council spent the most on outsourced ICT & BPO. With an income of over £300M, Capita continue to receive the greatest share in this sector.
Waste & Environment: The highest spending local authority in this sector was Greater Manchester Combined Authority (AGMA). Overall spend by councils increased again in 18/19, rising by 5.5% to £3.65B, with the biggest market share going to Veolia.
Buildings: This sector has seen a slight reduction in spend since 17/18, with 18/19 spend at £14.31Bn. Birmingham City Council were the highest spending authority. Councils spent over £450M with Willmott Dixon, the top supplier in the sector.
Health & Social Care: The top supplier in the largest market in terms of public sector outsourcing, HC-One saw its earnings from local government increase by over 75% compared to the previous financial year. Essex County Council were the highest spending council in this sector. Overall, local authority spend on private sector health and social care services increased by around 6% in 2018/19.
You can download the report here (requires you to submit your details).