Why it pays to invest in outsourcing despite its scandalous record

Outsourcing has seen more than its fair share of blunder and scandal, to the benefit of neither shareholders nor voters. Yet slow but steady improvements mean now may be the time to invest, says Jonathan Compton.

Cover illustration
Cover illustration

It seems absurd now that in the second half of the 20th century the main business of government – apart from the military and emergency services – was to own and operate businesses.

Yet this was the legacy of total government control during World War II, allied to a subsequent explosion of the state’s role in social security, health and education (still the three largest areas of government expenditure today).

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Jonathan Compton was MD at Bedlam Asset Management and has spent 30 years in fund management, stockbroking and corporate finance.