Serco claims £4bn in new contract wins

UK outsourcer Serco has won contracts worth a combined £4 billion so far this year, according to a statement from the company today.

Those contracts reflected Serco’s diverse range of offerings, ranging from ferry services to the Shetland Islands to accomodation for asylum seekers, but also its growing stature as an IT outsourcing provider.

The company won around $200 million (£125 million) of IT outsourcing contracts in the US, for example. Those included a $7 million contract with the US Air Force to provide IT services in support of the Air Force’s NexGen enterprise transformation programme, and renewed with the US Navy for the upkeep and management of its undersea surveillance system.

In the UK, Serco will provide a shared services centre for all NHS organisations in the new Midlands and East Strategic Health Authority, providing middle and back office support in the form of IT services, contract and risk management. Worth about £30 million a year, it is Serco’s first shared services contract in the UK health sector.

One of the largest contracts will see Serco will take over all customer services for UK home and online retailer Shop Direct. The deal is worth an estimated £430 million over ten years, the company said.

Serco also announced a £31 million contract for the provision of customer services to the State Bank of India. Serco will manage 1,800 employees handling sales and customer enquiries through email, phone and web chat. 

The company reiterated its warning to investors that "performance in the first half will reflect the challenging environment in the US and some remaining UK headwinds". However, "the strength of recent contract awards and progress on operational efficiencies reinforce a strong second half and confidence in achieving full-year expectations".

"The start of the year has been pleasing, with a number of significant contract awards," said CEO Christopher Hyman. "I am … delighted with the excellent wins and strategic positioning of our global BPO business, which further underlines our confidence for Serco’s portfolio to sustain attractive growth well into the future."

Avatar photo

Ben Rossi

Ben was Vitesse Media's editorial director, leading content creation and editorial strategy across all Vitesse products, including its market-leading B2B and consumer magazines, websites, research and...

Related Topics