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MoD departments outsourced for £36m
A private company has won a £36 million contract to run parts of the Ministry of Defence, the Government has announced.
Defence Secretary Philip Hammond said outsourcing parts of human resources, the finance department and security vetting at the MoD to Serco would save the taxpayer £71 million in the next four years.
Ministers have also conducted a "soft" marketing exercise to determine whether private companies could supply equipment to troops and manage military facilities.
In a written ministerial statement, Mr Hammond said: "Serco will be strongly incentivised to drive down costs and deliver efficiencies and we expect savings in the order of around £71 million to be achievable over the life of the contract."
http;//www.mod.uk/ (Ministry of Defence)