Outsourcing defence support and services market will turn into a global market worth $200 billion a year by the end of the decade. That's the opinion of Ian King, BAE Systems, chief of customer solutions and support.

Predicting that armed forces in Europe and North American will increasing, turn to "output based" solutions to solve their defence budgeting crises, King raises the prospect of governments buying services and equipment availability rather than hardware and spare parts.

Germany, Italy, France, the Scandinavian countries and the US were all likely to follow the lead of the UK in looking at these solutions, says King.

"This will become a global market - it is not a truly global market at the moment," he says. BAE Systems is predicting that spending on support will drop by a small margin over the coming decade but the percentage accessible to international competition will rise from 30% to 55%.

King says that at the moment his company has 4.2% of the global market and is well placed to increase its market share above the sector leaders.

Source: Flight Daily News