Serco profits surge as it eyes global BPO market growth

28 February 2012

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28 February 2012 | Adam Leach

Outsourcing giant Serco has reported pre-tax profits of £238.3 million – a rise of 11.4 per cent.

According to its full year results, published today, the rise is a result of winning new work, retaining deals and moving into the business process outsourcing (BPO) sector.

Last year, the company – which renewed its service delivery contract on the Barclays Cycle Hire scheme – completed the acquisition of BPO provider Intelenet to enable it to increase activity in the sector and offer existing customers a broader range of services.

 “Customers around the world are increasingly looking for end-to-end services that combine frontline capability with middle and back office operations, helping them to drive more efficiency and better quality services,” the company said. “Our global services division will therefore work alongside the regional divisions in order to deliver fully integrated services for their clients.”

The organisation is optimistic about further growth and expects to see similar prospects in 2012. It has identified new business opportunities across the globe valuing £30 billion and predicts that the public sector’s demand for efficiency savings would increase the potential for growth in the markets it operates in.

For the year, it reported £5.1 billion in contract awards - a 90 per cent win rate on rebids and extensions to existing contracts, and an order book of £17.9 billion.

The year also saw the company increase its international reach, reporting a record 44 per cent of revenues coming from outside the UK – due, in large part, to organic growth of 37 per cent in AMEAA (Africa, Middle East, Asia, Australasia) region.

Serco chief executive Christopher Hyman, said: “While challenges remain in the US and some UK markets, the breadth of our portfolio around the world and in the AMEAA region in particular, continues to present many new prospects. Our order book has grown, our pipeline of opportunities is large and we are now preparing for the next stage of growth, which includes our entry into the global BPO market.”

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