Serco eyes IT opportunities in US

Serco, one of the UK’s largest public sector service providers, says it is "encouraged" by opportunities for IT-lead growth in the US market, as UK government budget cuts continue to challenge it domestic business.

"We assume that the US federal government’s budgetary negotiations will be completed successfully and without significant impact or disruption to the industry," the company said in an interim statement published today.

It therefore expects to see opportunities arise "in areas such as IT infrastructure, cybersecurity… and energy efficient IT".

In 2008, UK-headquartered Serco acquired US IT services provider SI International for $432 million. It now derives 40% of its £4.3 billion revenues from outside the UK.

Serco said today that it was awarded contracts worth £1.6 billion during the first quarter of 2011, including a deal with Glasgow City Council to provide ICT support for schools.

The company said it expects its UK business to improve this year. "Although we are facing short-term headwinds resulting from the government’s austerity measures, we expect that this will change based on the government’s intention for greater involvement of the private and voluntary sectors in the delivery of public services."

Although it is not dedicated to IT, Serco is arguably one of the UK’s largest IT providers as services contracts will invariably involve an IT component.

Serco’s arch-rival Capita, meanwhile, has expanded its IT capabilities this year with acquisitions of companies including the library management software component of Talis and document management services provider Right Document Solutions.

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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...

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