Feral Jundi

Tuesday, January 19, 2010

Industry Talk: Good Year For Private Security, By Jody Ray Bennett

Filed under: Industry Talk — Tags: , , , , — Matt @ 6:26 AM

   Excellent little review about the state of affairs for the private security industry last year.  What I found interesting, was the details about all the acquisitions. I think of the quote about buying stocks–‘blood in the streets’, when I hear about Securitas gobbling up companies that are for sale during this recession.  It’s smart, and they will probably do very well as soon as the global recession starts to turn. –Matt

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Good Year for Private Security

19 Jan 2010

By Jody Ray Bennett for ISN Security Watch

While last year closed with new security threats, 2010 looks better than ever for giant, private security companies, Jody Ray Bennett writes for ISN Security Watch.

The world’s largest defense contractor, Lockheed Martin, received an early Christmas present last year when it was awarded an $841.9 million contract to supply 24 F-16 fighter jets to the Kingdom of Morocco. According to reports, Morocco is paying $35 million per aircraft, “which includes advanced countermeasures, electronic warfare and support equipment.”

The defense industry feared losses after the Obama administration cut costly, technologically risky and often developmentally delayed defense programs that were manufactured by Lockheed and its subcontractors. However, market analysts predict that this new contract will “boost […] the company, which had shrunk to $76.4 billion [in] fiscal 2009 from $80.9 billion at year-end fiscal 2008.”

But while Morocco has been searching to strengthen its military forces, the North African country is having difficulty attracting foreign investment, primarily from neighboring Gulf states, due to “poor infrastructure, lack of proper legal framework and excessive red tape.” As intra-national security is a deep concern for potential investors, the monarchy has been looking to strengthen security in its largest cities in order to attract foreign capital.

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Friday, November 27, 2009

India: India’s Private Security Metamorphosis, by Jody Ray Bennett

Filed under: India,Industry Talk — Tags: , , , , — Matt @ 6:42 AM

   Another great post from Jody.  This story puts a little more light on to a subject we briefly covered here and here.  India is massive, and if Mumbai is India’s 9/11, then it totally makes sense that the security industry growth would match the U.S. growth after our tragedy.

   Now one of the thoughts I had, is if the arms race between Pakistan and India will come to be reflected in a sort of PMC and PSC race?  I mean Pakistan seems to have a huge problem with PMC’s and PSC’s right now, but what happens when they start figuring out that their sworn enemy is actually embracing them and has a thriving security market to prove it? Will there come a point where Pakistan actually looks at the Blackwaters and Dyncorps and thinks, hmmm, maybe we should have a couple of those?  And on a broader question, will countries start looking at their local PMC’s and PSC’s as tools of national security?  Are we the new tank or jet fighter in the defense industry?   Interesting thought, and I would like to know what you think.  –Matt

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India’s Private Security Metamorphosis

27 Nov 2009

India’s newest private security personnel are rapidly transforming from static security guards to anti-terrorism forces, Jody Ray Bennett writes for ISN Security Watch.

By Jody Ray Bennett for ISN Security Watch

Thousands of young men throughout India begin each day in blue uniforms that closely resemble that of official police officers, and often armed with little more than batons and radios, they patrol, survey, search and check guests and clients of some of the largest multinational firms in the country.

These young men are escorting VIPs, checking luggage and bags with bomb-sniffing canines, surveying landscapes with binoculars and night-vision goggles and even using hi-tech electronic equipment to scan for cyberinvasions and other network threats for a multitude of private clients.

The company they work for is busy assessing security risks for elite multinationals doing business in India while providing them with personal, private security. In the event of an emergency, the company claims it will deploy a “quick response team” dispatched through a 24-hour manned security control room.

In an increased blurring of the lines between security guard services and the private security personnel of companies that often raise eyebrows in western media, several Indian firms are preparing to earn their spot in the global private security industry.

Meet TerraForce Security Services, India’s newest private security company. Set apart from many of the other private security firms throughout India, TerraForce was recently formed by Indian billionaire Kushal Pal Singh to protect the assets of DLF Group, India’s largest real estate company. DLF states that it is by far the “largest” in terms of “revenues, earnings, market capitalization and developable areas in India,” so it is hardly difficult to identify the company’s vested interest in protecting its businesses, projects and assets in a country that even the US Department of State has said is “ranked among the world’s most terrorism-afflicted countries.”

According to the New York Times, TerraForce is hiring “as many experts as it can,” some of which include “former National Security Guards, the black-clad commandos who reclaimed the Mumbai hotels” in the aftermath of the 2008 Mumbai attacks, and in a statement from TerraForce president and chief executive Harsh Wardhan, the company is “importing instructors from the Israeli army and the United States Marine Corps.”

Anti-terrorism is big business

Much like the private security industry boom that was experienced throughout North America and Europe in the aftermath of 9/11, India also experienced a rapid increase in demand for security in the period following the Mumbai attacks.

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