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An article published in the FT today says that outsourcing of public services to the private and voluntary sectors has almost doubled to close to £80bn in little more than a decade and makes up a far larger part of the economy than previously thought.
The data is backed by a government-sponsored study conducted by DeAnne Julius, the economist, revealing that those sectors supply a third of public services - everything from National Health Service treatments to bin emptying, IT, back-office functions and RAF pilot training.
The same study shows in fact that a third of all public services- - far more than originally thought – are now delivered by private and voluntary services.
The market is worth £79bn, employs almost as many people as the NHS and accounts for 6 per cent of gross domestic product, making it a larger industrial sector than pharmaceuticals, automotive or electricity, gas and water. It also has considerable potential for further growth both at home and abroad, the study is expected to conclude.
PeoplePerHour.com is tapping into that trend. By allowing private enterprises as well as public services to outsource transparently to freelance professionals online, the site is introducing a novel new channel for growing volume of outsourced work.
The site’s founder and CEO Xenios Thrasyvoulou says “we are constantly seeing an increasing fraction of that outsourcing market going online , so coupled with the absolute growth of the market itself, online outsourcing is a space that looks very promising”
The site primarily serves private enterprises but is increasingly broadening out to public sector services as well. |