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Following the general election, the United Kingdom has seen a massive hike in spending on IT and business process outsourcing (BPO.) In fact, the amount of money UK organizations spent on IT and BPO tripled in the period following the 2015 general election compared with the three months prior.

According to research from Nelson Hall commissioned by BPO supplier Avarto, July to September of 2015 saw £2.21bn in new deals. The amount spent in the third quarter of 2015 was also 69% higher than the same period in 2014. They postulate that confidence in the market was a major factor in the sudden spike.

As Arvato Financial Solutions UK CEO, Bryan Mouat explained,

Political certainty following the general election has clearly had a positive impact on the outsourcing industry. With market confidence returning, organizations across the private and public sectors are continuing to turn to outsourcing partners for the expertise and technology to help them achieve their objectives.”

BPO represented roughly 46% of deals during this period with a total of £406m spent. IT outsourcing made up 50% of the contracts, totaling £1.77bn. The remaining 4% was a combination of BPO and IT outsourcing services.

A huge portion of that spending came from the public sector, accounting for £2bn out of the £2.21bn total spent. Most impressively, this was the most spent by the public sector since the beginning of 2012. Previously, the telecoms sector accounted for the biggest spend in the private sector.

£6.65bn was spent on IT and business process outsourcing in the UK in 2014, according to prior research from Nelson Hall.

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