A contract manager and public official inspect a service mechanism connecting an external supplier to a public service, weighing the sourcing choice alongside contract performance.

28 Sep 2026

Government launches major push towards insourcing – what does this mean for contract managers?

The Cabinet Office recently announced a new Insourcing Unit to examine critical service contracts and identify opportunities to bring services back in-house. It will sit alongside the new Public Interest Test applying to most central-government service contracts over £1 million.

Before deciding that outsourcing has failed, organisations need to distinguish between failure of the sourcing model and failure to manage the contract post award effectively.