Serco has welcomed the increase in asylum seekers in its annual report. But it says its future profits in Australia will depend on the ”country conditions” in the Middle East and Asia. … Serco admits its ”very strong organic growth” reflects – at least in part – its capitalisation on its existing contracts, including with the government. In particular, it says, its profits in Australia reflect ”an increase in the amount of work undertaken for the Australian Department of Immigration and Citizenship [DIAC]”. ”In immigration services in Australia, the level of irregular maritime arrivals has increased in 2012, leading to a growth in the number of people in our care,” its annual report notes. ”The level of our future activity is still likely to fluctuate based on country conditions in the Middle East and Asia, where most people in our care originate, and the prevailing government policy, speed of visa processing and the application of the Australian government’s recent offshore processing legislation.” … University of Sydney economist Bob Walker, who has written extensively on privatisation, said research had shown that privatising or outsourcing services was often as expensive or more expensive than governments running the services themselves. ”Essentially the profits of Serco reflect the loss to the taxpayer of outsourcing services that the public service could perfectly well do themselves.” A Serco spokesman said the increase in the value of the contracts reflected the increase in the amount of work undertaken for the Department of Immigration and Citizenship. ”When we commenced the contracts in 2009, we were caring for 800 people,” he said. ”We currently look after more than 8000, and employ more than 3000 people in immigration services.”