Capita signs 5 new outsourcing deals worth £244 million

The 5 outsourcing deals are:

1.    English Heritage – an outsourcing and IT contract deal
2.    MetLife – a 10 year, £120 million deal which will include IT support and life and pensions administration for financial services
3.    London Boroughs or Bromley and Lewisham – A shared services agreement
4.    National Policing Improvement Agency – Participation in the organisations digital interviewing framework
5.    Teachers Pensions Scheme – £80 million deal as the organisations preferred administration supplier

The Chief Executive of the Capita Group, Paul Pindar, said that \”The need for our public sector clients to achieve substantial cost savings and for private sector clients to increase their efficiency to remain competitive offers significant opportunities for the group going forward.\”

Last year the UK Government was urged to outsource expensive Information Technology processes to India in an effort to significantly reduce costs and generally improve efficiency and performance. Many Government departments have been under real pressure to reduce operating costs by as much as 40% in order to save much needed cash. These developments have prompted Ovum, an Information Communication Technology advisory company to urge Government Departments to turn to Indian outsourcers to achieve savings.

Edward Thomas, a senior analyst at Ovum, said that \”In the past the government struggled because of the political implications of outsourcing to India, but as it looks at costs with greater scrutiny I wouldn\’t be surprised if we start seeing more contracts coming from this area. Since the recession, companies have become more wary about signing long-term outsourcing contracts. There has also been a trend to using multiple vendors as businesses become more savvy about how they use outsourcing, so rather than sign one large deal, they\’ll sign three smaller ones with more specialist vendors”.

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