I have just read this interesting post by Kable the leading provider of ICT public sector research

The UK public sector is recognised as one of the most sophisticated users of ICT and business process outsourcing among governments worldwide. The core markets for ICT outsourcing in the UK public sector are now accepted as being mature, but they nevertheless remain vigorous. On the demand side, there are a number of areas where we expect high growth levels to continue; contract renewal activity is picking up after a lull of more than two years; significant contracts signed over the last 18 months are now operational and generating their first full year of revenue; some incumbent suppliers have been displaced, there is a growing concentration of activity among major suppliers in each area of the market; and significant shifts are taking place in the way that outsourcing contracts are structured.