The pandemic has caused a slowdown in government awards and demand for cleaning, security, transport and other services which will lead to a consolidating effect within the sector as COVID-19 has compounded some pre-pandemic issues. 

During lockdown Serco furloughed 2,500 staff as most of their services were closed. They have pledged to pay back £50 million in liquidity support from the government by the end of the year but 1,200 employees are still on furlough payments to keep them employed. 

However, they have done well in comparison to other outsourcing companies. During the pandemic they secured contracts worth around £157 million between February 1st and September 7th alongside work mobilising 10,500 contact tracers for the NHS Track and Trace Programme and helping to set up drive-in test centres.

Although these contracts have been criticised and there’s a public campaign to pro-renationalise Serco showing the distress within the sector. 

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