G4S Annual Report and Accounts 2011

Overview Strategic review Performance
Strategic review
Strategy for growth
1
Drive outsourcing
in key markets
Lincolnshire Police
In December 2011, G4S was selected to provide a broad
range of services to Lincolnshire Police – the first contract of its
kind to be awarded by a British Police Authority. The services
range from HR to finance, and from custody services to fleet
management. G4S was selected from an original 160 bidders.
The contract runs from April 2012 and is worth at least £200m
over the next ten years. In total the Authority expects to make
around £28m in savings over the life of the contract. It is part
of a framework agreement for an additional 10 police forces
which should lead to similar outsourcing from a number
of other police authorities.
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. By leveraging its capabilities
across operating segments, G4S can effectively expand its presence and
drive outsourcing in the markets in which it operates. Our aim is to assist
our customers in achieving one or more of their business objectives:
uu
Increase their revenues
uu
Manage their costs
uu
Manage their risks
uu
Protect their critical assets
uu
Improve the service they deliver to their customers
Our approach and progress
Pioneering outsourcing
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.
Government partnerships
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.
14
G4S plc
Annual Report and Accounts 2011