The chief executive of outsourcing giant Capita has shrugged off fears about massive cuts to the public sector.

While other supply services firms have issued warnings about how future profits might be affected by the age of austerity, Capita boss, Paul Pindar, said he expected business to pick up.

‘I am expecting a greater degree of activity over the next five years than in the previous five,’ said Mr Pindar. ‘There is a whole series of initiatives which could take place right across government, where there are some relatively quick wins.’

The chief executive said that while there was still some reluctance in Whitehall and among councils to embrace the private sector, negotiations were now under way to extend the group’s two biggest contracts – handling the Criminal Records Bureau and TV Licensing – which were both due to expire in 2012.

In May, the company announced that it had performed well during the first four months of 2010.

The local government market accounted for 22% of Capita’s turnover in 2009, and it has contracts with several local authorities, including Birmingham City Council and Sheffield City Council.

Capita’s strategic partnership with Sheffield has been awarded a Government Opportunities magazine National Excellence in Public Procurement Award for best service.

The company has upgraded the local authority’s ICT network and telephony system under the partnership.

Capita’s partnership with Sheffield delivers ICT, revenues and benefits, financial business transactions, HR and payroll services.

‘This certification recognises that Capita’s ICT service can transform a clients’ ICT from a basic capability to one which can compete with leading local authorities around the country,’ said partnership director, Terry Boynes.