Research from arvato's first Quarterly Outsourcing Index found that in the first three months of 2014 local government spend on outsourcing was up 58% on the previous year. 

Our study, conducted with industry analyst firm NelsonHall, identified that the back-office remains a focal point for outsourcing activity. The vast majority of deals recorded in the first quarter involved business process outsourcing (BPO) with an emphasis on transforming back office processes to be the most popular. HR services – including payroll, benefits administration and recruitment – accounted for most of the activity.