Gartner Research

Business Process Outsourcing Is Not the Only Option for Governments

Published: 19 June 2013

ID: G00245755

Analyst(s): Anurag Gupta , Rishi Sood, Cathy Tornbohm

Summary

Business process outsourcing is growing within the U.K. government. Joint ventures, employee-run cooperatives (mutuals), outcome-based contracting and labor automation will create new opportunities.

Table Of Contents
  • Impacts

Analysis

Impacts and Recommendations

  • Business process outsourcing (BPO) and shared services are driven by savings targets and service-level improvements; process modernization of citizen services will create differentiation for providers
  • Many government institutions are evolving from plain buyers to buyers and suppliers; government is encouraging entrepreneurship and partnerships
  • Outcome-based contracting and payment by results will play larger roles
  • BPO providers are leveraging technology to automate labor-based processes, reduce costs and escape political sensitivities using labor arbitrage

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