More evidence of austerity bonanza for private sector vultures‏

The press is reporting rising profits for companies in the vanguard of public sector outsourcing. The Evening Standard reported last week that 'Capita cashes in on outsourcing' http://www.thisislondon.co.uk/standard-business/article-23858766-capita-says-outsourcing-demand-is-staying-strong.do

'The outsourcing boom is beginning, Capita said today, as the back-office specialist posted a 15% rise in first-half profit of £163.1 million.

The group, which collects TV licence fees, said it had won and renewed contracts worth £523 million in the first six months of the year.

Its profit was up from £141.7 million in the first half of 2009.

“There is buoyant demand for outsourcing across both the private and public sectors," said chief executive Paul Pindar.

The company, whose revenue was 4% higher than the period last year at £1.36 billion, said its bidding pipeline grew to £4.4 billion from £3.7 billion in February.

“The need for our public sector clients to achieve substantial cost efficiencies offers significant opportunities for the group going forwards,” Pindar added.

Fellow back-office outsourcer Serco said at the end of last month that it was on track for strong revenue growth this year as it benefits from efficiency drives by clients amid the Government's spending squeeze.'