UK government vows to reclaim services from outsourcing giants

The United Kingdom government has announced plans to establish a new unit tasked with accelerating the process of bringing services back in-house from outsourcing companies. This move is part of a broader strategy to improve value for money and service quality, particularly in technology-driven business processes. The unit, which will operate under the Office for the Prime Minister and Cabinet, aims to coordinate insourcing efforts, overcome delivery barriers, and identify opportunities for cost savings across government departments.

It will also consider the recently introduced Public Interest Test for contracts worth £1 million or more, which evaluates factors beyond just price, such as service quality and public value. Among the potential candidates for insourcing is the Cabinet Office's management of building maintenance, including cleaning and security, currently contracted out until 2028.

The urgency behind this initiative has been heightened by the failure of Capita's contract to administer the Civil Service Pension Scheme, which has resulted in technical issues and poor service delivery. Nick Thomas-Symonds, Minister for the Cabinet Office, acknowledged that while the pension administration could be a suitable candidate for future insourcing, it would require careful planning to avoid disrupting the payroll.