UPDATE 1-UK's G4S sees bright outlook and further investment on cost-cutting

EDINBURGH, March 8 (Reuters) - The world's largest securitygroup G4S said its gains from a cost savings drive wouldgo towards boosting its technological capabilities, giving it"substantial confidence" in its medium-term outlook.

G4S, which provides outsourced services such as guarding,security and cash management, said full-year revenue was 7.43billion pounds ($597.36 million), below analyst expectations for7.55 billion pounds, but within in a lower range it had aforecast late last year of between 3 and 4 percent growth.

Profit rose 5.7 percent to 277 million pounds.

Leaner processing and better organisation would achieverecurring operating gains of 70 million to 80 million pounds by2020, it said. Along with refinancing gains of around 20 millionpounds, that would mean it could re-invest in growth and boostprofit.

Growth in technology-enabled revenues and good cashgeneration, as well as better productivity, gave the group"substantial confidence" for the next three years, with a goalof raising core revenues by an average of 4 to 6 percentannually.

Overall, strong growth in developed markets was partiallyoffset by the effect of weak trading in the Middle East andIndia region, which was expected to stabilise during 2018.

G4S provides outsourced services such as providing guardsand security, including the supply, installation and monitoringof alarm systems, as well as managing sensitive care and justiceservices.

The stock has managed to buck some of the trend in itssector, where sentiment has been soured by the collapse ofbuilding and outsourcing firm Carillion in January. That led toa political backlash about huge and sensitive contracts awardedby public departments to private companies.

G4S shares are flat so far this year versus a 6 percentdecline in London's FTSE 100 share index.($1 = 0.7198 pounds)(Reporting by Elisabeth O'Leary; editing by Kate Holton)