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MANAGED SERVICES TOPS£100M

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The local government managed services market grew by 38% in 1998 and is now worth£102 million a year, according to...
The local government managed services market grew by 38% in 1998 and is now worth£102 million a year, according to leading contractor ITnet.

The latest ITnet Index shows there were 22 managed services contracts let last year, with 14 councils outsourcing for the first time.

More contracts were awarded in 1998, although the total annual value remained stable at£40m.

The average value of contracts fell from£2.7m to£1.8m as there was only one contract worth more than£50m, compared with three in 1997.

The council IT market increased by 15% to£124m, although three-quarters of the deals in 1998 were renewals and extensions.

ITnet public sector and corporate development director Rod Watts said: 'More and more IT contracts are being wrapped up in managed service deals, which will only continue.

'As the market matures, the selection criteria depend less on a supplier's capabilities and more on the relationship and supplier culture.'

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