UK-based outsourcer Serco wins £280m in immigration contract
HOOK, UNITED KINGDOM — Outsourcing company Serco secured contracts worth £280 million (US$356 million) amid growing immigration demands and the UK government’s record backlog in asylum cases.
The firm, responsible for staffing UK immigration centers, reported a profit of £188 million (US$239 million) in the first half of the year, up 52%. This growth, including services in the UK and Australia, comes despite decreased requirements for COVID testing.
However, Serco‘s business practices previously faced scrutiny for the living conditions provided to asylum seekers. Allegations of “institutional abuse” at hotels that house migrants emerged in May.
Despite these challenges, Serco’s CEO Mark Irwin remarked positively about the company’s direction.
“We are making good progress to deliver profitable growth over the medium term and towards achieving our strategic ambition to be the partner of choice to governments globally,” he stated.
Serco’s shares increased by 2.8% to 159.5 pence (US$2.02) yesterday, August 3. The company’s growth, despite controversy, illustrates the intricate relationship between governmental immigration policies, corporate opportunity, and ethical considerations within the industry.
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