Dreamer,
Agree that a lot of sites use the likes of ESS, Sodexo etc. A lot of the bigger players though like RTIO, BHP, FMG actually employ experienced people to run their airports rather than someone who will go back to making beds or washing dishes 30 mins after departure.
The ground handling function is remaining with the service companies. however airport operators are starting to learn that employing a bare assed ARO to look after their principle asset that gets all their staff in and out is maybe not a very wise choice. Especially when the NCNs start turning up on the GMs desk.