We then spoke about the benefit of long term contracts with customers. DTS believes longer term contracts, where more complex services are delivered, are attractive to all stakeholders, adding; “I think the opportunity around long term contracts is that you embed yourself in the customer, embed yourselves in their processes and become indispensable: shorter term, more commoditised contracts really don’t allow that.” It is clear that G4S is of the opinion that the ability to invest in longer term contracts facilitates the investment and development of bespoke management systems, new processes and fresh capital investment. DTS adds; “You are sharing a vision with your customer. Working with a customer, we can completely redesign the way the service is delivered, and demonstrate the pay back to them over the longer term.”

Our interview moved on to customer expectations in the security industry. DTS believes that the security industry is not any different to any other industry, in terms of customers’ expectations being hard to exceed.  His thinking is that such expectations are a common trait in any business to business or any business to government environment; “My view is that the market broadly differentiates between customers buying security and customers who are buying a price commodity.” The method that companies use to buy services has evolved. “20 years ago businesses were buying single contracts on single sites.  Then with the advent of FM, we started to see the provision of both soft and hard services. Then services were bundled. The trend is definitely moving towards Total Facilities Management, where there are a decreasing number of players who have the ability to manage all the services for a complete facility.” DTS believes that this trend, as well as commodity driven purchasing, has resulted in sectors, such as retail, becoming less attractive. “In retail it often is a case of who can provide a guard at a store at the lowest unit cost, which will only provide a deterrent.” There is however interesting new emerging markets, such as utilities which post 9/11 has become more regulated. “In this sector we have helped to shape and engage with the customer who accepts there is a need to monitor and protect, driven by a principle need for security as well as price.”  Comments DTS

Another interesting trend identified by DTS is the change in the shape of national bids which are becoming more complex intricate projects with one or two bidders:  “We have got a good heritage going into the market first, for example prisons. Where you are either 1 of 1 or first in to a market, you become experts in a particular offering. Most businesses that are first to market do well.  DTS says the G4S focus is in the B2B and B2G government sectors.” Over 50% of G4S Secure Solutions business in the UK and Ireland is now B2G contracts with special focus in the Home Office and Justice sectors. Two years ago, G4S took the decision to enter into the defence sector due to a particularly interesting evolution from the private sector just providing equipment, tanks and aeroplanes to the growing provision of camps, accommodation and operating facilities. DTS believes the trend in this sector is now moving towards deployment of operational support capability, creating the ability to work with the military, in theatres such as Afghanistan and Sierra Leone. A further iteration of the service will result in a support services businesses being embedded within the military structure during post conflict reconstruction “There are some key government target areas we are focussing on. There are also key business to business areas, where we have a number of defined sectors and where we are building market position such as, events and maritime, where we believe security is an important differentiator.” concluded DTS

We then move the interview on to the growing trend of holistic facilities offerings as opposed to pure security services. We mention Warwick Hospital where G4S is offering complete facilities services. Is this a toe in the water we ask? DTS responds “There is an interesting trend there.  If you look at the Infologue table of the UK Top 20 security players in 2003, OCS was only non-security “interloper”.  If you look at the Top 20 now, 3 out of top 5 companies in the security sector provide more than security, essentially offering af facilities management capability.” DTS quotes the recent acquisition by Mitie Plc of Dalkia as a topical example of a growing phenomenon around which G4S are building their proposition. DTS goes on to explain that the traditional security market, which has an annual turnover in the region of £5billion, does not reflect current buying patterns. These trends create a different market view, of FM services, with an annualised turnover which could be in the region of £22 billion. “Does this mean that we would end up providing FM to 100 Tesco sites? No.  However, we could provide facilities management to an airport or to an acute hospital, because in our view if there is something about the criticality of that service, facility, asset, or person, and there will always be a security component in it.  This is why you will start to see G4S bidding for facilities services at data centres or corporate headquarters, for example, where we believe there is significance to our offering as our brand name and our heritage has a resonance in that area,” adds DTS.

Does this mean that G4S will provide services such as cleaning services in such cases? “We already do today.  In many of our facilities, we run the healthcare, the education, and the catering.” DTS emphasises that the services offered would always be underpinned by the G4S philosophy and strategy with a security element. “We will pick sectors where security and criticality is important. We are quite pragmatic about our approach; we are a large provider of security to FM companies. We have to be focussed around security; we can’t be good at everything.  For example, take Mitie, they have done tremendously well, but their mantra is we will provide anything to any facility.  In my opinion that is a business model, not a strategy.  Our view is you can’t be good at everything.”

We talk about one of the most contentious industry issues – the failure by the regulator to licence in house security operatives, does DTS have an opinion on this?

“If you provide security services you provide security services so the Private Security Act 2001 should include "In House Security Teams" under this legislation.  Such legislation would provide a level playing field within the industry providing consistency of training, screening, compliance and enforcement.  These would then underpin public confidence that there is a consistent approach to security. This would not remove a company’s decision to opt for "In House" as whether a license is needed or not depends on the activities undertaken and not the job title.”