The boss of British services giant Serco, which makes about 30 per cent of its revenues in Australia, says the ageing of the population will drive the next wave of privatisations and outsourcing of government services.

Rupert Soames, the chief executive for the past five years of a company with global revenues of £3 billion ($5.7 billion), said most governments around the world are facing the same pressure on public sector finances, and Australia is no exception.