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Business leaders have welcomed a new government report which calls on councils to attract more firms to run public services. The review, by economist, Dr DeAnne Julius, revealed that outsourced public services had more than doubled over the last 10 years, and the sector now had an annual turnover of £79bn, and was now second in size only to the United States. It also recommended a director of service delivery be appointed for all government departments and councils. ‘Local authorities should introduce competitive challenge into areas of service delivery where it has not yet been tried, and consider how best to incentivise further innovation in sectors where it already exists. ‘There is a clear case for action to ensure conditions for growth of the public services industry continue,' said Dr Julius. Mark Quartermaine, managing director of BT Public Sector, said the nature of outsourcing ‘has changed dramatically' over the last 10 years. Mr Quartermaine said by ‘focusing on meeting business requirements' outsourcing was now more about developing ‘a relationship with significant long-term benefits for both parties' involved. ‘The result is a long-term partnership, based on a commitment to delivering the public sector outcomes,' he said. ‘One in which both the parties are commited for the long term.' CBI deputy director general, John Cridland, said: ‘The growth of the UK public services industry here and abroad is a good news story and deserves recognition. ‘Ministers must now ensure that every part of the government machine is geared to selling out expertise and allowing the private-public partnership market to flourish.' The report was also welcomed by business secretary, John Hutton, who said the sector now employed more than one million people.

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BUSINESS

Bosses welcome call for more outsourcing

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