Outsourcing giants Capita Group and Serco issued strong results at the end of February, while predicting significant growth in the market.
Capita announced pre-tax profits up 24 per cent from £32.2 million to £40 million in the year to 31 December. Turnover increased 39 per cent, from £327 million to £453 million.

Highlights of the year included the group's largest ever public sector win, worth £400 million. In all, Capita won £700 million worth of new major contracts in 2000.

Now, the company predicts that the outsourcing market for business services will be worth more than £30 billion within three years, £10 billion of which will come from central government, £5 billion from education, £4 billion from insurance, £6 billion banking and finance, and £5 billion local government.

Meanwhile, Serco announced a 16 per cent increase in full-year pre-tax profits from £29.3 million to £34 million in the year to 31 December. Turnover was up by 20 per cent from £807.5 million to £967 million.

Serco forecast strong growth in government outsourcing in the US and Europe.

Source

The Facilities Business