Opportunities as outsourcing market swells

The government-sponsored study, by economist Dr DeAnne Julius reveals outsourcing to the private and voluntary sectors has reached a value of £79 billion, according to the Financial Times.

In addition, the sector employs almost as many workers as the NHS - the UK's largest single employer - makes up six per cent of gross domestic product and provides up to one-third of public services, ranging from RAF pilot training, IT support and bin emptying.

The sector is larger than the pharmaceuticals, automotive or electricity, gas and water industries, with expectations that it will see further growth in the future.

Business secretary John Hutton, who commissioned the study, commented: "UK companies and the services they deliver are of increasing global interest in this growth market.

"As policymaker, procurer and provider, we [...] must do all we can to help UK companies prosper at home and in these new overseas markets.”

The findings show that performance of outsourcing public services has grown beyond estimations.

A report in 2006 by market intelligence firm Kable suggested the market would reach £64.3 billion by 2008 - £15 billion below the level it has attained.