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Contracted-Out Services Market Review 2007

  • ID: 549753
  • July 2007
  • Region: United Kingdom
  • 224 Pages
  • Key Note Ltd
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FEATURED COMPANIES

  • Accenture (UK) Ltd
  • Adecco UK Ltd
  • Group 4 Securicor PLC
  • ISS A/S
  • Johnson Service Group PLC
  • Mott MacDonald Group Ltd
  • MORE

It is estimated that the UK contracted-out services market was worth £303.09bn at current prices in 2006, having grown by 8.4% on 2005 and by 37% over the review period (2002 to 2006).

The contracted-out services covered by this Market Review, which are sometimes described as business-support services, are business-to-business (B2B) services bought in from specialist providers. They range from legal services, computer support and market research to office cleaning, catering, security and total facilities management. Some users of these services are small and medium-sized enterprises (SMEs) that do not have the resources to provide them in-house. However, clients also include large private companies that choose not to devote management time and effort to non-core activities, and public-sector bodies that put such activities out to private tender.

The best-performing sectors over recent years have been certain professional services such as labour recruitment, management, architectural and engineering consultancy services, although, in the advertising services market, performance has been weak. Of the `hard' contracted-out services, the investigation and security services market has been the best performer. At the other extreme, laundry and dry-cleaning services constituted the worst-performing market of all over the review period.

Business services have benefited from the fact that, in recent years, the UK has enjoyed modest but steady economic growth, accompanied by low inflation and low unemployment, providing a stable background to the market's development. READ MORE >

Note: Product cover images may vary from those shown
2 of 4

FEATURED COMPANIES

  • Accenture (UK) Ltd
  • Adecco UK Ltd
  • Group 4 Securicor PLC
  • ISS A/S
  • Johnson Service Group PLC
  • Mott MacDonald Group Ltd
  • MORE

1. Industry Overview

Report Coverage

Definitions

Standard Industrial Classification

Other Recent Key Note Reports

Report Background

Historical Background

Recent Legislation

Economic Trends

Population

Table 1.1: UK Resident Population Estimates by Sex (000), Mid-Years 2002-2006

Gross Domestic Product

Table 1.2: UK Gross Domestic Product at Current and Annual Chain-Linked Prices (£m), 2002-2006

Inflation

Table 1.3: UK Rate of Inflation (%), 2002-2006

Unemployment

Table 1.4: Actual Number of Unemployed Persons in the UK (million), 2002-2006

Household Disposable Income

Table 1.5: UK Household Disposable Income Per Capita (£), 2002-2006

Market Size

Table 1.6: The UK Market for Contracted-Out Services by Value at Current and Constant 2000 Prices (£m), 2002-2006

Market segmentation

Canteens and Catering

Canteens

Catering

Computer and Related Activities

Hardware Consultancy

Publishing of Software

Other Software Consultancy and Supply

Data Processing

Database Activities

Other Activities

Research and Development

Research and Experimental Development on Natural Sciences and Engineering

Research and Experimental Development on Social Sciences and Humanities

Legal Services

Activities of Patent and Copyright Agents

Barristers at Law

Solicitors

Other Legal Activities Not Elsewhere Classified

Accounting Services

Accounting and Auditing Activities

Book-Keeping Activities

Tax Consultancy

Market Research and Business Consultancy Services

Market Research and Public Opinion Polling

Business and Management Consultancy Activities

Architectural and Engineering Services

Architectural and Engineering Activities and Related Technical Consultancy

Technical Testing and Analysis

Advertising

Sale or Leasing Activities of Advertising Space or Time

Planning, Creation and Placement of Advertising Activities

Advertising Activities Not Elsewhere Classified

Labour Recruitment and Personnel Services

Investigation and Security Services

Investigation Activities

Security and Related Activities

Industrial Cleaning

Traditional Cleaning Services

Window Cleaning Services

Disinfecting and Exterminating Services

Specialised Cleaning Services

Other Cleaning Services

Washing and Dry Cleaning Services

Miscellaneous Business Activities

Photographic Activities

Packaging Activities

Secretarial and Translation Activities

Call-Centre Activities

Credit Reporting and Collection Agency Activities

Speciality Design Activities

Other Business Activities

Facilities Management

Industry Structure

Concentration

Table 1.7: Analysis of UK VAT-Based Enterprises in the Contracted-Out Services Industry by Turnover Sizeband (number and %), 2002 and 2006

Number of Companies

Employment

Table 1.8: Number of Employee Jobs in the Contracted-Out Services Industry in Great Britain by Sex and Type of Contract (000 and %), June 2002 and 2006

Market Position

Key TRends

Outsourcing Trends

Table 1.9: Reasons for Failure to Renew Outsourcing Contracts Among NOA Members (%), 2005

Liberalisation of EU Cross-Border Services

The Environment

LEGISLATION

Contracting Out of Public-Sector Activities

Employment Legislation

National Minimum Wage Act 1998

Disability Discrimination Act 2005

TUPE Regulations 2006

Work and Families Act 2006

Employment Equality (Age) Regulations 2006

Sector Skills Councils

Key Trade Associations

Business Services Association

Cleaning and Support Services Association

European Outsourcing Association

National Outsourcing Association

2. PEST Analysis

INTRODUCTION

political FACTORS

Terrorism

Provision of Public Services

Public/Private Partnerships

Economic Regulation

Safety Regulation

Economic FACTORS

Gross Domestic Product

A Recession-Proof Sector?

Inflation and Unemployment

International Trade

March 2007 Budget

Social FACTORS

Demographic Trends

Environmental Protection

Employment Legislation

Technological FACTORS

Information Technology

Other Technological Developments

3. Key Note Primary Research

Introduction

policy statements

Business Services Association

Electronic Data Systems Ltd

PricewaterhouseCoopers LLP

Compass Group PLC

Deloitte & Touche LLP

Fujitsu Services Holdings PLC

Accenture (UK) Ltd

KPMG LLP

Capgemini UK PLC

Hays PLC

Ernst & Young LLP

Rentokil Initial PLC

Summary

4. Competitive Structure

The marketplace

Market Leaders

Table 4.1: Top Ten Companies in the UK Market for Contracted-Out Services by Turnover (£m), 2005/2006

Electronic Data Systems Ltd

Company Structure

Financial Results

PricewaterhouseCoopers LLP

Company Structure

Financial Results

Compass Group PLC

Company Structure

Financial Results

Deloitte & Touche LLP

Company Structure

Financial Results

Fujitsu Services Holdings PLC

Company Structure

Financial Results

Accenture (UK) Ltd

Company Structure

Financial Results

KPMG LLP

Company Structure

Financial Results

Capgemini UK PLC

Company Structure

Financial Results

Hays PLC

Company Structure

Financial Results

Ernst & Young LLP

Company Structure

Financial Results

Other Companies

The Capita Group PLC

Computacenter (UK) Ltd

Group 4 Securicor PLC

LogicaCMG PLC

Omnicom Europe Ltd

Rentokil Initial PLC

Serco Group PLC

WPP Group PLC

Outside Suppliers/contractors

Marketing Activity

Main Media Advertising

Table 4.2: Main Media Advertising Expenditure on Contracted-Out Services by Sector (£000 and %), 2005 and 2006

Exhibitions, Conferences and Trade Shows

Table 4.3: Exhibitions, Conferences and Trade Shows in the Contracted-Out Market, June 2007 to February 2008

5. Canteens and Catering

Definition

Key TRends

Company Strategies

Skills Shortages

School Catering

Catering Subsidies

Market Size

Table 5.1: The UK Canteens and Catering Market by Value at Current and Constant 2000 Prices (£m and index 2000=100), 2002-2006

Supply Structure

Number of Companies

Table 5.2: Analysis of UK VAT-Based Enterprises in the Canteens and Catering Market by Turnover Sizeband (number and %), 2002 and 2006

Employment

Table 5.3: Number of Employee Jobs in the Canteens and Catering Market in Great Britain by Sex and Type of Contract (000 and %), June 2002 and 2006

Trade Associations

British Hospitality Association

Hospital Caterers Association

Other Specialist UK Associations

European Federation of Contract Catering Organisations

Major Players

Compass Group PLC

Sodexho Ltd

Buying Behaviour

Forecasts 2007 TO 2011

Table 5.4: The Forecast UK Canteens and Catering Market by Value at Current and Constant 2000 Prices (£m), 2007-2011

6. Computer and Related Activities

Definition

Key TRends

Offshoring

Professionalism in IT

Market Size

Table 6.1: The UK Computer and Related Activities Market by Value at Current and Constant 2000 Prices (£m and index 2000=100), 2002-2006

Supply Structure

Number of Companies

Table 6.2: Analysis of UK VAT-Based Enterprises in the Computer and Related Activities Market by Turnover Sizeband (number and %), 2002 and 2006

Employment

Table 6.3: Number of Employee Jobs in the Computer and Related Activities Market in Great Britain by Sex and Type of Contract (000 and %), June 2002 and 2006

Trade Associations

Intellect

European Information, Communications and Consumer Electronics Technology Industry Association

World Information Technology and Services Alliance

MAJOR PLAYERS

Electronic Data Systems Ltd

Fujitsu Services Holdings PLC

Capgemini UK PLC

Advertising and Promotion

Buying Behaviour

Forecasts 2007 TO 2011

Table 6.4: The Forecast UK Computer and Related Activities Market by Value at Current and Constant 2000 Prices (£m), 2007-2011

7. Research and Development

Definition

Key TRends

Expenditure on Research and Development

Internationalisation of UK R&D

Market Size

Table 7.1: The UK Research and Development Market by Value at Current and Constant 2000 Prices (£m and index 2000=100), 2002-2006

Supply Structure

Number of Companies

Table 7.2: Analysis of UK VAT-Based Enterprises in the Research and Development Market by Turnover Sizeband (number and %), 2002 and 2006

Employment

Table 7.3: Number of Employee Jobs in the Research and Development Market in Great Britain by Sex and Type of Contract (000 and %), June 2002 and 2006

Trade Associations

Association of Independent Research and Technology Organisations

Major Players

GlaxoSmithKline Research and Development Ltd

QinetiQ Ltd

Buying Behaviour

Forecasts 2007 TO 2011

Table 7.4: The Forecast UK Research and Development Market by Value at Current and Constant 2000 Prices (£m), 2007-2011

8. Legal Services

Definition

Key TRends

Quality of Legal Services

Outsourcing of Legal Services

Market Size

Table 8.1: The UK Legal Services Market by Value at Current and Constant 2000 Prices (£m and index 2000=100), 2002-2006

SUPPLY STRUCTURE

Number of Companies

Table 8.2: Analysis of UK VAT-Based Enterprises in the Legal Services Market by Turnover Sizeband (number and %), 2002 and 2006

Employment

Table 8.3: Number of Employee Jobs in the Legal Services Market in Great Britain by Sex and Type of Contract (000 and %), June 2002 and 2006

Trade Associations

The Commercial Bar Association

The Law Society

Major Players

Allen & Overy LLP

Eversheds LLP

Buying Behaviour

Forecasts 2007 TO 2011

Table 8.4: The Forecast UK Legal Services Market by Value at Current and Constant 2000 Prices (£m), 2007-2011

9. Accounting Services

Definition

Key TRends

Outsourcing of Finance and Accounting Services

Accountancy Profession in the UK

Market Size

Table 9.1: The UK Accounting Services Market by Value at Current and Constant 2000 Prices (£m and index 2000=100), 2002-2006

Supply Structure

Number of Companies

Table 9.2: Analysis of UK VAT-Based Enterprises in the Accounting Services Market by Turnover Sizeband (number and %), 2002 and 2006

Employment

Table 9.3: Number of Employee Jobs in the Accounting Services Market in Great Britain by Sex and Type of Contract (000 and %), June 2002 and 2006

Trade Associations

Chartered Institute of Management Accountants

Institute of Chartered Accountants in England and Wales

Major Players

PricewaterhouseCoopers LLP

Deloitte & Touche LLP

KPMG LLP

Buying Behaviour

Forecasts 2007 TO 2011

Table 9.4: The Forecast UK Accounting Services Market by Value at Current and Constant 2000 Prices (£m), 2007-2011

10. Market Research and Business Consultancy Services

Definition

Key TRends

Management Consultancy Outsourcing

Central Government's Use of Consultants

Ipsos MORI

Market Size

Table 10.1: The UK Market Research Services Sector by Value at Current and Constant 2000 Prices (£m and index 2000=100), 2002-2006

Table 10.2: The UK Business and Management Consultancy Sector by Value at Current and Constant 2000 Prices (£m and index 2000=100), 2002-2006

Supply Structure

Number of Companies

Table 10.3: Analysis of UK VAT-Based Enterprises in the Market Research Services Sector by Turnover Sizeband (number and %), 2002 and 2006

Table 10.4: Analysis of UK VAT-Based Enterprises in the Business and Management Consultancy Sector by Turnover Sizeband (number and %), 2002 and 2006

Employment

Table 10.5: Number of Employee Jobs in the Market Research and Business Consultancy Services Market in Great Britain by Sex and Type of Contract (000 and %), June 2002 and 2006

Trade Associations

European Society for Opinion and Marketing Research

Management Consultancies Association

Market Research Society

Public Relations Consultants Association

Major Players

TNS UK Ltd

Accenture (UK) Ltd

Buying Behaviour

Forecasts 2007 TO 2011

Table 10.6: The Forecast UK Market Research Services Sector by Value at Current and Constant 2000 Prices (£m), 2007-2011

Table 10.7: The Forecast UK Business and Management Consultancy Sector by Value at Current and Constant 2000 Prices (£m), 2007-2011

11. Architectural and Engineering Services

Definition

Key TRends

Consulting Engineering Market

Impact of Environmental Legislation

Market Size

Table 11.1: The UK Architectural and Engineering Services Market by Value at Current and Constant 2000 Prices (£m and index 2000=100), 2002-2006

Supply Structure

Number of Companies

Table 11.2: Analysis of UK VAT-Based Enterprises in the Architectural and Engineering Services Market by Turnover Sizeband (number and %), 2002 and 2006

Employment

Table 11.3: Number of Employee Jobs in the Architectural and Engineering Services Market in Great Britain by Sex and Type of Contract (000 and %), June 2002 and 2006

Trade Associations

Association for Consultancy and Engineering

Royal Institute of British Architects

Major Players

WS Atkins PLC

Mott MacDonald Group Ltd

Buying Behaviour

Forecasts 2007 TO 2011

Table 11.4: The Forecast UK Architectural and Engineering Services Market by Value at Current and Constant 2000 Prices (£m), 2007-2011

12. Advertising

Definition

Key TRends

Complaints to the Advertising Standards Authority

Internet Advertising

Threats to the Advertising Market

Market Size

Table 12.1: The UK Advertising Market by Value at Current and Constant 2000 Prices (£m and index 2000=100), 2002-2006

Supply Structure

Number of Companies

Table 12.2: Analysis of UK VAT-Based Enterprises in the Advertising Market by Turnover Sizeband (number and %), 2002 and 2006

Employment

Table 12.3: Number of Employee Jobs in the Advertising Market in Great Britain by Sex and Type of Contract (000 and %), June 2002 and 2006

Trade Associations

Advertising Association

Incorporated Society of British Advertisers

Major Players

WPP Group PLC

Omnicom Europe Ltd

Buying Behaviour

Forecasts 2007 TO 2011

Table 12.4: The Forecast UK Advertising Market by Value at Current and Constant 2000 Prices (£m), 2007-2011

13. Labour Recruitment and Personnel Services

Definition

Key TRends

Industry Structure

Employment

Market Size

Table 13.1: The UK Labour Recruitment and Personnel Services Market by Value at Current and Constant 2000 Prices (£m and index 2000=100), 2002-2006

Supply Structure

Table 13.2: Analysis of UK VAT-Based Enterprises in the Labour Recruitment and Personnel Services Market by Turnover Sizeband (number and %), 2002 and 2006

Employment

Table 13.3: Number of Employee Jobs in the Labour Recruitment and Personnel Services Market in Great Britain by Sex and Type of Contract (000 and %), June 2002 and 2006

Trade Associations

Recruitment & Employment Confederation

Major Players

Hays Specialist Recruitment Ltd

Adecco UK Ltd

Buying Behaviour

Forecasts 2007 TO 2011

Table 13.4: The Forecast UK Labour Recruitment and Personnel Services Market by Value at Current and Constant 2000 Prices (£m), 2007-2011

14. Investigation and Security Services

Definition

Key TRends

Environmental Legislation

Cash-in-Transit Attacks

Aviation Security

Market Size

Table 14.1: The UK Investigation and Security Services Market by Value at Current and Constant 2000 Prices (£m and index 2000=100), 2002-2006

Supply Structure

Number of Companies

Table 14.2: Analysis of UK VAT-Based Enterprises in the Investigation and Security Services Market by Turnover Sizeband (number and %), 2002 and 2006

Employment

Table 14.3: Number of Employee Jobs in the Investigation and Security Services Market in Great Britain by Sex and Type of Contract (000 and %), June 2002 and 2006

Trade Associations

The Association of Police and Public Security Suppliers

British Security Industry Association

Major Players

Group 4 Securicor PLC

Reliance Security Services Ltd

BUYING BEHAVIOUR

Forecasts 2007 TO 2011

Table 14.4: The Forecast UK Investigation and Security Services Market by Value at Current and Constant 2000 Prices (£m), 2007-2011

15. Industrial Cleaning

Definition

Key TRends

Environmental Issues

Skills Requirements

Employment Legislation

Market Size

Table 15.1: The UK Industrial Cleaning Market by Value at Current and Constant 2000 Prices (£m and index 2000=100), 2002-2006

Supply Structure

Number of Companies

Table 15.2: Analysis of UK VAT-Based Enterprises in the Industrial Cleaning Market by Turnover Sizeband (number and %), 2002 and 2006

Employment

Table 15.3: Number of Employee Jobs in the Industrial Cleaning Market in Great Britain by Sex and Type of Contract (000 and %), June 2002 and 2006

Trade Associations

Association of Building Cleaning Direct Service Providers

Association of Healthcare Cleaning Professionals

British Cleaning Council

Cleaning and Support Services Association

European Federation of Cleaning Industries

Major Players

OCS Group Ltd

ISS A/S

Buying Behaviour

Forecasts 2007 TO 2011

Table 15.4: The Forecast UK Industrial Cleaning Market by Value at Current and Constant 2000 Prices (£m), 2007-2011

16. Washing and Dry Cleaning

Definition

Key TRends

Trends Shared with Other Markets

Environmental Trends

Market Size

Table 16.1: The UK Washing and Dry-Cleaning Market by Value at Current and Constant 2000 Prices (£m and index 2000=100), 2002-2006

Supply Structure

Number of Companies

Table 16.2: Analysis of UK VAT-Based Enterprises in the Washing and Dry Cleaning Market by Turnover Sizeband (number and %), 2002 and 2006

Employment

Table 16.3: Number of Employee Jobs in the Washing and Dry Cleaning Market in Great Britain by Sex and Type of Contract (000 and %), June 2002 and 2006

Trade Associations

Textile Services Association

Guild of Cleaners and Launderers

Major Players

Johnson Service Group PLC

The Davis Service Group PLC

Buying Behaviour

Forecasts 2007 TO 2011

Table 16.4: The Forecast UK Washing and Dry Cleaning Market by Value at Current and Constant 2000 Prices (£m), 2007-2011

19. A Global Perspective

Share of GDP TAKEN BY Services

Sectors of the EU Economy

The Service Sector

Table 19.1: Importance of Services in the EU-25 Non-Financial Business Economy by Value Added and Employment (_bn and 000), 2003

Business Services

Table 19.2: The Largest Sectors of the EU-25 Non-Financial Business Economy by Value Added by Country, 2003

Business Services Subsectors

Table 19.3: Components of the EU-25 Business Services Sector by Value Added and Employment (_bn and 000), 2003

Summary

20. The Future

introduction

Table 20.1: Forecast UK Gross Domestic Product Growth in Real Terms, Inflation and Unemployment (% and million), 2007-2011

Forecasts 2007 TO 2011

Table 20.2: The Forecast UK Market for Contracted-Out Services by Value at Current and Constant 2000 Prices (£m), 2007-2011

Future Trends

Demographics

Table 20.3: Forecast UK Resident Population by Sex (000), Mid-Years 2007-2011

Short-Term Trends in the UK Service Sector

Prospects Across the EU Service Sector

Future Trends in Facilities Management

Legislation and Regulation

Offshoring

Other Outsourcing

21. Further Sources

Associations

General Sources

Government Publications

Other Sources

Bisnode Sources

Note: Product cover images may vary from those shown
3 of 4

- TNS UK Ltd
- Accenture (UK) Ltd
- WS Atkins PLC
- Mott MacDonald Group Ltd
- WPP Group PLC
- Omnicom Europe Ltd
- Hays Specialist Recruitment Ltd
- Adecco UK Ltd
- Group 4 Securicor PLC
- Reliance Security Services Ltd
- OCS Group Ltd
- ISS A/S
- Johnson Service Group PLC
- The Davis Service Group PLC

Note: Product cover images may vary from those shown
4 of 4
Note: Product cover images may vary from those shown

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