Raphael Bohne
Research expert covering professional services
Outsourcing of public services by UK government - statistics & facts
In the United Kingdom, there are several different companies that have been awarded contracts from the government to consult and manage various different public services. These were services that were nationalized for the majority of the twentieth century, and as a result have become a topic of serious debate surrounding efficiency, shareholder dividends, and the nature of laissez-faire or free market economics in the United Kingdom. These services have included, but are not limited to: NHS hospital facility management, immigration removal centers, and asylum seeker housing. The value of contracts awarded to these companies has been significant, with the top two most lucrative contracts worth almost two billion British pounds respectively. Furthermore, the top strategic suppliers to the UK central government all had direct public sector billings in the region of one billion British pounds.
As these immigration patterns have shown no real signs of slowing down, and when combined with an increasing median age of the population that has caused more strain on the NHS, it seems likely these companies will continue to have a monopoly on contracts awarded by the UK government as there is seemingly no desire to do otherwise.
Leading strategic suppliers providing a variety of services
Geo Group, Serco, Sodexo, and Mitie, amongst other companies and public limited companies, have had various contracts from the UK government running simultaneously. The revenue of Mitie Group plc, for example, was approximately four billion British pounds whilst the company was concurrently being awarded government contracts worth over 1.5 billion British pounds. At the same time, Mitie Total Security Management was the security company with the highest annual turnover in the United Kingdom. The France-headquartered food services and facilities management company, Sodexo, had service sectors in business and administration, health care and seniors, and education. Within the United Kingdom, the company has been involved in NHS facility management, prison operations, and school catering.Increased immigration and an ageing population
The number of refugees and asylum seekers displaced abroad has increased significantly over the last decade. As these patterns have revealed themselves, global attitudes towards accepting refugees have also become more negative. In the United Kingdom, public limited companies such as Serco have been tasked with the management of what have become known as immigration removal centers to deal with the influx of those seeking asylum. These undertakings have not been without controversy, as the number of major injury incidents at Serco have generally increased since 2016.As these immigration patterns have shown no real signs of slowing down, and when combined with an increasing median age of the population that has caused more strain on the NHS, it seems likely these companies will continue to have a monopoly on contracts awarded by the UK government as there is seemingly no desire to do otherwise.
