According to recent research by PwC, almost one million UK jobs will be lost by government public spending cuts. The total job losses amount to around 3.4% of total employment in the UK and around 943,000 jobs in absolute terms in the next three years.
In Northern Ireland, which is already struggling to recover from economic troubles, the predicted percentage of job losses jumps to around 5.2% – around 36,000 jobs. In London and the South East 3.1 per cent of jobs will be lost – but this equates to a much larger cull of 230,000 jobs due to the larger size of their economies. Scotland might see job losses of around 95,000 and Wales around 52,000.
It is expected that this will have a positive impact on outsourcing, given that organisations will look to reduce their non-core and fixed cost operations by increasing the use of private and voluntary sector organisations for the delivery of front-line services.
Proservartner predict that the impact will be on onshore outsourcing arrangements with providers asked to focus on keeping jobs and services in the local borough within the UK, whilst providing efficiencies and effectiveness in the outsourced operations.