From public sector to private sector - will outsourcing take-off?

As the public sector prepares for the savage cuts in government spending, many firms in the private sector are looking forward to exploiting the opportunities provided by greater outsourcing by the public sector. This excellent short video by the BBC’s Robert Peston is packed full of useful insights for economics & business students alike. Are we likely to see a privatised fire service, or greater private sector provision of policing and health services?