Prisons across NSW will have to prove they are able to meet performance targets or risk being handed over to the private sector.

An open bid to operate the John Morony Correctional Centre will kickstart the changes, which were announced on Sunday by the NSW Minister for Corrections, David Elliott.

An open bid for market testing of John Moroney Correctional Centre will kickstart the reforms, which were announced on Sunday by the NSW Minister for Corrections, David Elliott. Credit:Helen Nezdropa

The program will see the public and private sectors compete to run the correctional centre in Windsor.

NSW Prisoner numbers have been "out of control" in recent years, ballooning to in excess of 12,000 currently.