Its open access report highlights the challenge of making significant reductions in public spending in order to balance the budget by the end of 2016/17. It also takes into account the increasing pressure that changing demographics will put on services.
The CBI claims that moving on regardless is not an option and urgent action is needed from the Government to deliver its Open Public Services strategy and find fresh ways to deliver essential services at lower costs.
John Cridland, CBI director-general, said: "Our public services are under pressure as never before, with increasing customer demand, including from an ageing population, and an urgent need to manage costs. Carrying on regardless would be a recipe for disaster. The Government needs to face this tough policy challenge head on.
"Most public services are still largely state monopolised and it's time to open some of them to competition.
Unison, the UK's biggest public sector union, yesterday called the report "fundamentally flawed".
Unison has said that the 11% savings calculation does not take into account the often huge knock-on costs associated with privatisation, including procurement, tendering and contract management. It also omits to mention the huge cost to the taxpayer and local people when the private sector fails, or that some public bodies have brought public services back in-house after contracts have failed, Unison said.
Dave Prentis, Unison general secretary, said: ?"Where is the proof that 11% savings can be achieved by privatising public services? The CBI has plucked this figure from the air."
He added: "All the evidence shows that privatisation is a costly failure that the taxpayer can ill afford. Only last week MPs felt it necessary to call for a blacklist of firms that have failed to deliver on their contracts.
Oxford Economics conducted the survey for the CBI online in July.
