Serco has entered the bidding process for an Australian government contract worth £1bn. The contract, scheduled to lasts five years, would see the outsourcing giant run two offshore immigration centres on Manus Island and Nauru from April 2017 onwards.

The deal would be a boost to Serco’s financial position and reputation. The company was hit hard by a series of botched contracts within the last three years. Most prominently, Serco was accused by the Serious Fraud Office of overcharging for the electronic tagging of prisoners on behalf of the UK government.

The outsourcing giant joins Broadspectrum in bidding for the contract - the current provider of offshore prison services at Manus Island and Nauru. It has just seen its contract renewed until March 2017 while the Australian government reviews the scope of the tender.

Serco already has a lengthy relationship with the Australian government; over the years Serco has become one of its best clients. The company runs 11 onshore detention facilities for the public authority, as well as another on Christmas Island for the Canberra government.

For weekly news updates, subscribe to our email newsletter

Related: Serco presses on with strategic realignment towards the public sector