Hard on the heels of Carillion's demise came the latest shock in the outsourcing industry as Capita issued a profit warning on Thursday, causing its shares to drop 40%.
Two months into his tenure as chief executive Jonathan Lewis announced plans to restructure the group - a costly process that would require the raising of £700m from shareholders through a rights issue.
While trading in 2017 had been in line with forecasts, the company said it expected 2018 underlying pre-tax profits to be lower at around £270m-£300m.
The company said there would likely be a "significant negative impact" from contract and volume attrition, one-off items and increases in costs.
Lewis announced that significant change would be required as Capita was "too widely spread" across too many markets, leaving it unable to gain a competitive advantage in all its businesses.
He added there had been too much emphasis on acquisitions to drive growth, suggesting disposals would be a core focus of the "transformation programme".
"An immediate priority is to strengthen the balance sheet through a combination of cost savings, non-core disposals and new equity," Lewis added. He also announced the suspension of dividend payments.
Capita's problems were brought into sharper focus by the recent demise of Carillion, a former rival in the outsourcing industry.
Delays in the awarding of government contracts, cost overruns and poor management have been among the reasons suggested for Carillion's liquidation, and it didn't take much reading between the lines to see that Lewis was suggesting similar faults at Capita.
He added: "Capita is too complex, it is driven by a short-term focus and lacks operational discipline and financial flexibility."
The company's shares fell sharply in October after disappointing half-year revenues. Ken Odeluga, market analyst at City Index, said at the time: "Capita has followed a similar trajectory to rivals Serco, G4S and Babcock. All were caught in the political and economic crossfire linked to dependence on government contracts as public spending was squeezed."
There was no announcement from government agencies - but developments were likely to be closely followed to ensure Capita - and its clients, providers and investors - doesn't suffer the same fate as Carillion.
Helal Miah, investment research analyst at The Share Centre, said: "This could become another hot political issue as Capita is heavily reliant on outsourcing for others, including the government.
"The government has already placed other companies on watch after the Carillion fiasco. No doubt some will say that Capita should be on that list too."
After an hour of trade on the London Stock Exchange, shares in Capita were down 41.23% at 204.4p.
Shares in industry rivals were also hit. Serco Group was down 2.75% at 92.05p, while Babcock International lost 3.11% to 690.37p and G4S shed 0.84% to 284.4p.