Outsourcing approaches £200bn

19 November 2012

The Business Services Association (BSA) has published the second edition of the report it commissioned by Oxford Economics - UK outsourcing across the private and public sectors.

The report updates the 2011 figures on the size and strength of the industry, but also includes, for the first time, the value of outsourced activity by region and parliamentary constituency.

Some of the headline findings of the report are:

· Turnover across all outsourced sectors – including IT, catering, facilities management, employment services, office support, technical consultancy, public services and many more – is in the region of £199 billion. That is equivalent to almost 7.5% of total economy-wide output.

· The split between customer type by institutional sector is around 64%-36% in favour of the private rather than public realm.

· These services contribute around £113 billion a year to the gross value added measure of UK output - just over 8.5% of the total.

· In the process these activities directly support around 3.3 million jobs, equivalent to 10.5% of all UK workforce jobs or 12.25% of the nation’s employee jobs.

· Businesses in these sectors make a total direct tax contribution, looking at the five major taxes only, of £28.5 billion – some 9.5% of all government revenues from these sources.

· At the regional level, the share of outsourced jobs in total jobs varies between 7.25% and 13.5%. This share is above the UK average in London, the South East, West Midlands and East of England. It is lowest in Wales and Northern Ireland. At the constituency level this ratio varies between 4% and 28%.

To download the full report follow this link: http://www.bsa-org.com/publications/77