Army to outsource recruitment to private sector

The Army is gearing up to outsource its recruitment to the private sector for the first time.

The Ministry of Defence (MoD) said the Army would hold an open day for interested bidders on Thursday 28 May, for a privatised recruitment contract, which could cost £100m over 10 years. The move is expected to help the Army achieve cost savings of £2bn by 2010.

The Navy and Air Force were not planning to outsource recruitment, according to an MoD spokeswoman.

She told Personnel Today: "We refuse to comment ahead of the industry day to ensure it's a level playing field for all potential bidders. However, it is incorrect to say the Royal Navy and Royal Air Force were currently considering [outsourcing recruitment to the private sector]."

The spokeswoman added only "certain elements" of the recruitment function would be subcontracted to private firms, although she refused to confirm which parts ahead of the open day.

The MoD slashed thousands of HR jobs as part of its move to shared services in 2007, saving an estimated £280m over 10 years.