Contact centre outsourcing is set for significant growth in the public sector as organisations attempt to cut costs, according to analysts Ovum.

A combination of budget cuts set against increased demand for better services by citizens, will make call centres increasingly attractive to the sector, indicated the analysts.

Ovum also expressed the potential for increasing use of "non-traditional CRM" systems as part of government contracts. Interactive voice response, analytics and outbound notification are all potential growth areas.

Ovum said it remained "bullish" about outsourcing opportunities in the public sector despite the fact staff were likely to "fight aggressively to prevent the use of outsourcers as a means of reducing public payroll headcount".

It also indicated that there was likely to be widespread resistance to increased levels of offshoring – something frequently condemned in the media. It said cost savings would need to be created "through automation rather than labour arbitrage".