Transferring expertise
Relatively high levels of GDP growth in developing markets, increasing demand for security services and G4S’s ability to export its experience from its operations in more developed markets have driven positive revenue and margin growth for G4S in developing markets
Our objectives and strategy
G4S aims to grow the revenue generated from developing markets from 30% in 2011 to 50% of the group’s total revenue by 2019 through:
- Building on G4S’s global presence and market share
- Using experience of working in developing markets
- Pursuing a multi-service strategy
- Adding facilities services in larger developing markets
- Substantial focus on Brazil, India and China – the global GDP growth drivers over the next ten years
Our approach and progress
Developing markets multi-service strategy
G4S has an unrivalled geographic footprint which has been developed over many years and is unique amongst its peers. Our service standards and expertise are also usually superior to those of local competitors. This means we are a trusted partner for our customers, who are keen to secure their people and assets and comply with local standards and regulations.
This has meant that the range of services supplied to customers has broadened to a multi-service offering, covering manned security, security systems, cash solutions, systems integration, monitoring and response and facilities services.
Typical developing market progression
G4S is active in more than 80 developing markets and has been present in many of these markets for decades.
G4S often enters a market through a large customer (such as a US embassy) or via acquisition of a strong local company. Through this approach we have built up a unique network of businesses often providing a broad range of services and with high levels of expertise and service standards compared to local peers.
Outlook
The group has delivered a compound annual revenue growth of 25% on average from its developing market activities since its formation in 2004 and seen the percentage of group revenues increase from 13% to 30% of the group during that period.
G4S expects to grow the revenue generated from developing markets to 50% of the group's revenue by 2019.
G4S global presence, market share and experience of developing markets should mean we are well positioned to benefit from further growth opportunities.