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Insourcing government work often proves more expensive than outsourcing due to various costs.

Recommendation
If the market isn’t sufficiently competitive, one option we suggested that the Cabinet Office could consider is what value there might be to bringing the work in-house. The Cabinet Office said that ‘insourcing’ was always considered when making such business case appraisals. It said that insourcing was generally, but not always, more expensive than outsourcing options, because of transition costs, transfer arrangements, and the ‘on-costs’ of joining the civil service.60 59 Letter from Cabinet Office, 5 August 2025 60 Q 108 15
Government Response

A response document is linked to this report, dated 19 January 2026. Response attribution to this conclusion has not been verified. Read the response document.

Addressee Bodies
HM Treasury
Timeline
Recommendation age 0.9 yr
Report published 24 Oct 2025