New kind of outsourcing deals from UK government

November 9, 2011: UK government seems like adopting out of the box strategies.

Yes, the government might have increased the number of the outsourcing contracts signed in the recent times compared to the previous years, even though the total contract value has not increased. Now, this could be considered something very crucial for the service providers in the offshore and the near shore outsourcing markets.

In the recent time UK government has adopted some new rules in dealing with outsourcing the requirements of various departments. There are many initiatives which the UK government has adopted in the recent time which has a direct impact on the contract values. Out of which the most noticeable is the recent contract strategy adopted by the Department of Work & Pension, according to which the contract was not given to one particular company; if fact it was split to five lots. Some of the major players among the five were HP and IBM along with Accenture.

It is not the only one incident. The civil service pension administration in the nation also adopted some fresh model in choosing outsourcing services. The department took a strategy by which it partnered with a private company to do outsourcing. To administer pension of more than 1.5 million civil servants the department has adopted a split up policy according to which there will be three groups to own it; that is the government itself along with the private company and the staffs which comes around 500.

There are also expectations that this trend will pick up the speed and there will be more multi sourcing in government in the recent times. Bringing up such strategies will help the government to tap fresh commercial opportunities. In the public sector there are immense opportunities and revising the outsourcing rules will help government to have much economic dealings; moreover the service providers will also be benefited with immense opportunities available. Even experts have the opinion that if the government adopts strategies to reduce its workforce and put all payroll administration or related jobs of the civil servants for outsourcing then the opportunity for service providers will be very wide.      

It is better to have such models which have private and public partnership strategies; this will always help the government, moreover the service providers will be benefited with increase in business as well as opportunity to hold share in the public sector. But the service providers must also become more conscious as the competition might increase and also try to be well advanced with their offerings. They need to identify the importance of delivering better services and better value for money.   

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