Shared services 'to hit £4bn by 2012'

Nov 20 2008 4:40PM

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The shared services market will be worth almost £4 billion between 2007 and 2012, it has been predicted.

Research by analytical firm Ovum estimates that the sector will experience a compound annual growth rate of 8 per cent over this period.

John O'Brien, author of the UK Public Sector Shared Services: A Market Emerging, report, explained that although this is a downgrading of previous predictions, the shared services market is still healthy.

He said: "We remain convinced of the opportunities for shared IT services suppliers delivering shared services to the UK public sector over the long term."

Suppliers that have already entered the market should benefit from this situation, especially if they are prepared to adapt over the coming years, Mr O'Brien added.

Recently, the Local Government Chronicle reported that Essex county council is considering put a £5.4 billion outsourcing contract up for tender.

However, the authority will only do so if it believes it can make the costs savings it predicts through shared services.