Serco Group PLC has said it expects more medium-term opportunities to come from U.K. government outsourcing, dismissing recent concerns that plans to use the private sector to deliver public services were being scaled back, but admitted that there would still be short-term adverse effects from the country's austerity measures.

The outsourcing group has said it was on track with its 2011 expectations after some strong contract wins and was well placed to achieve future revenue targets.

Serco, which among other things runs London's cycle-hire scheme and Dubai's metro, announced that it had won 1.6 billion pounds worth of work since the start of its financial year on January 1.

The group, which last month won two contracts under the government's welfare-to-work scheme, added it was well placed to achieve revenue of 5 billion pounds and an increase in adjusted operating profit margin to 6.3 percent in 2012.