Capita boss, Paul Pindar, has joined a growing group of high-profile sourcing professionals calling for an increase in public sector outsourcing.

The comments were made following figures from the CBI last week that £130bn could be cut from public spending through increased outsourcing.

Pindar said: “Outsourcing companies could easily save money in areas such as benefit payments as well as reducing back office and administration costs. If you look at the total level of public expenditure of £680-£700bn and the level of savings that have previously been made of 25-30pc, there's no doubt significant savings are there."

According to The Telegraph, the CBI has today written to Chancellor Alistair Darling ahead of the Budget to say that "re-engineering the way public services are delivered can increase public sector productivity"

Commenting on the need for increased outsourcing, National Outsourcing Association chairman, Martyn Hart said, “The sector’s ability to cut costs by traditional means, such as staff cuts, is limited, so sourcing and shared service arrangements will come as a matter of course.”