2014 has been yet another challenging year in local authority administration. The prolonged impact of welfare reforms, the digital by default agenda and continual budget cuts are mounting the pressure on local government organisations, increasing the importance of looking at new ways of delivering services.

This sector has long been at the forefront of UK outsourcing, and last year was no different. Our analysis - produced in partnership with industry analyst, NelsonHall – found that local government contracts accounted for 13% of all outsourcing deals signed last year. Total deal value stood at £606m, with a 60% / 40% split between business process outsourcing (BPO) and IT Outsourcing (ITO) services.

Our most recent index includes several key statistics that indicate working with a private sector partner to deliver services is increasingly seen as a key strategy in enabling local authorities to tackle their budgetary and efficiency challenges.