Report finds increase in digital customer services across public sector

Local government organisations are integrating sophisticated digital services, such as web chat and social media management across their customer service provision, according to new research by business process outsourcing provider arvato.

The report, carried out in partnership with industry analyst NelsonHall, found that in 2014, 67% of public sector customer service contracts, including local government, were multi-channel in nature – a 34% year-on-year increase.

Additionally, local government outsourcing contracts signed in 2014 were worth a total of £606 million, with a 60% / 40% split between BPO and IT outsourcing (ITO) deals respectively.

Debra Maxwell, managing director of arvato UK, said: “The new research illustrates that local government organisations are increasingly realising the benefits of outsourcing for themselves and their citizens. The fact that the majority of contracts signed in 2014 involved second generation agreements shows that outsourcing is working and helps councils up and down the country to deal with current challenges.

“Local government has long been at the forefront of UK outsourcing and our 2014 review shows that local authorities are increasingly focusing on securing more sophisticated deals. Digital is now a key part of customer services contracts, showing that authorities are utilising their outsourcing partnerships to really transform services and deliver channel shift.”

Read the full 2014 UK Outsourcing Index here.


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