By leveraging its capabilities across operating segments, G4S can effectively expand its presence and drive outsourcing in the markets in which it operates
Our objectives and strategy
G4S uses its expertise in key services, sectors or countries to offer comprehensive solutions addressing multiple customer needs. For example, G4S can serve international customers across different markets by exporting its government expertise to new countries, implementing its cash solutions model across multiple countries and using its global risk management and security capabilities to protect customer assets. Our aim is to assist our customers in achieving one or more of their business objectives:
- Increase their revenues
- Manage their costs
- Manage their risks
- Protect their critical assets
- Improve the service they deliver to their customers
Our approach and progress
In addition to the Lincolnshire Police contract mentioned above, G4S has been a pioneer in the outsourcing of security for many areas such as the design and management of private prisons (see page 30 for HMP Birmingham case study), electronic monitoring of offenders , prisoner escorting and integrated ATM contracts to name but a few.
We believe that government outsourcing is a long-term source of growth as public sector spending remains under pressure and governments turn to the private sector to provide a number of outsourced services.
Government contracts, which represented around 27% of G4S’s revenue in 2011, tend to be long-term strategic partnerships with recurring revenues. G4S provides outsourcing services to governments in the areas of prisons, prisoner escorting, electronic monitoring of offenders, back-office and custody suite services for police forces and integrated facilities services for key government locations.
We believe that government outsourcing will continue to be a key trend for the security industry and related sectors.
Currently one of the most significant opportunities for outsourcing is in the UK, where the pipeline for further government outsourcing remains strong, particularly in areas such as prisons, police, health and the Department for Work and Pensions.
In the longer term we believe there will be further opportunities to drive outsourcing in developing markets based on the expertise we have demonstrated in the UK and elsewhere.