Birmingham City Council has inked a £142m, 10-year long deal with outsourcing firm Capita to give a make over to its much publicized faulty and unfriendly customer service operations. The deal was in fact to Service Birmingham, created specially by Capita last year to deliver BPO and IT transformation services to Birmingham. Axon from SAP will be subcontracting the service from Capita.
It seems the purpose of creating this special purpose vehicle Service Birmingham is giving Capita its much needed yield. This is the second big contract that it has won since its launch last year in April. In December 2005, Capita has won a £475 million ITO deal.
'The first deal for corporate services has apparently already delivered £9.5m in savings, and is due to generate an impressive total of £800m over 10 years,' said Ovum analyst John O'Brien.
Service Birmingham were created as a public-private partnership between Capita and Birmingham City Council. Capita own 60%, BCC own 35% and the remaining 5% is controlled by a staff fund.
Posted by: Anonymous | June 1, 2007 5:19 PM | Permalink to Comment