Charities, voluntary groups and private firms like G4S and Serco stand to benefit from the proposals.
BBC: Serco and G4S face billing probe over electronic tagging
G4S and Serco will be investigated after Ministry of Justice officials identified potential "billing" issues.
BBC: Serco and G4S face billing probe over electronic tagging
Serco welcomed the report, saying it had worked "extremely hard" to improve its service.
Carl Patching, transition and transformation manager for Serco, said the closure was proposed last year.
Serco, which runs the site, is defending the legal action but has declined to comment.
Serco said the memo was "wholly inaccurate and misleading" and was not aimed at meeting targets.
The National Audit Office (NAO) said concerns were raised that Serco staff were altering data about performance.
Serco NorthLink Ferries has cancelled sailings between the Northern Isles and Aberdeen due to adverse weather conditions.
The contact centre is operated by The Listening Company, which was acquired by Serco in the same year.
Serco says the move follows securing a major contract and expansion of its other work for many well-known firms.
Serco confirmed on Thursday the centre it runs for home shopping firm Shop Direct would close by January 2014.
BBC: Pledge over 300 jobs at Worcester Shop Direct call centre
Serco said it had taken "swift and decisive action" to improve its service.
Serco, for example, runs private prisons in Britain as well as the Dubai metro and American military field hospitals.
Operator Serco NorthLink said there were no plans to bring in one of its other two ferries as a replacement.
Whistleblowers played a "significant" role in highlighting concerns about Cornwall's out-of-hours doctors service run by Serco, a report has found.
Serco staff were told in the memo how to make changes when dealing with people who might need an ambulance.
Subsequently, a Clinical Quality Commission (CQC) report found Serco was not meeting four of the essential standards of quality and safety.
The authority, which runs the facility, also said Serco Leisure is its preferred bidder to manage the site at Holme Pierrepont.
Private-sector companies like Ingeus, G4S and Serco - already providers of a wide range of public services - will be looking longer-term.
The proposals for the re-organisation of schools have been put forward by Serco, the private company which runs children's services in Stoke.
And Ms Maguire believes that the prospect of losing her school from the city's education statistics will concentrate the minds of Serco.
Serco's Elaine Bailey said the company had "every confidence" in the service provided to the MoJ and would co-operate fully with the audit.
BBC: Serco and G4S face billing probe over electronic tagging
Serco is creating more jobs at UK contact centres, including in Cardiff and Sheffield, and moving some work to South Africa and India.
BBC: Pledge over 300 jobs at Worcester Shop Direct call centre
Jan Lewis, site director for Serco, said: 'I am delighted to confirm these roles are new permanent roles, and we have already started recruiting.
Serco moved to a new office in Cardiff in 2011 to provide services for organisations including online and home shopping retailer Shop Direct Group.
Serco, which has run the service since 2006, has a team of more than 180 doctors, 50 other clinicians and about 140 support staff.
Serco, which runs the site, said the closure was down to the way people shop as now about 75% of customers place their orders online.
The city's education service is run by the private company Serco.
Serco's call-handling system lists questions for Serco staff to ask patients.
The contract was split in two, with IBM and Serco given the job of getting a system in place at nine airports before last year's Olympics.
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