Wednesday’s Comprehensive Spending Review will not only outline where the cuts will be made but it will also give a clear sign as to who the winners and losers will be in shared services.
It is generally agreed that the cuts will be positive for the outsourcing industry. Reduced public spending means that savings need to be made which should present many opportunities for the industry and its variety of vertical expertise.
The NOA believe that the cuts could fuel a ‘surge’ in public sector outsourcing with companies specialising in back-office service being the most who benefit.
Martyn Hart, NOA Chairman, said: “This week’s announcement is sure to prompt more government departments to outsource services which are not core to their business.”
Big integrated companies will be able to offer public savings by offering just one point of contact and companies with a broad range of services should be able to adapt easily to meet specific demands.
A sourcing focus feature will follow the announcement. For further comment on the spending review:
http://www.telegraph.co.uk/finance/newsbysector/supportservices/8071761/Spending-Review-2010-Cuts-may-hold-silver-lining-for-support-services.html