Capita Group secures outsourcing deals worth £244m

Outsourcing specialist The Capita Group has secured five new contracts since the start of 2011, with a combined value of £244m.

The UK-based company, which provides a range of services including ICT and back-office support, said some of the deals were new, while others were extensions of existing arrangements.

The deals are:

• An outsourcing and IT contract with English Heritage

• Life and pensions administration for financial services company MetLife, including IT support, in a deal worth £120m over 10 years

• A shared services agreement with the London Boroughs of Bromley and Lewisham

• Participation in the National Policing Improvement Agency's digital interviewing framework

• Preferred administrative supplier to the Teachers' Pension Scheme – a seven-year deal worth £80m

Capita's chief executive Paul Pindar said that in 2010 by comparison, businesses and organisations had been slower to make decisions on major outsourcing contracts.

Despite this, the company's full-year turnover rose two per cent year on year to £2.7bn, and its underlying pre-tax profits increased by 12 per cent to £364.2m.

"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," said Pindar in Capita's preliminary results statement.

In addition, Capita will open a new outsourcing centre in Krakow, Poland, in early 2012, in response to consumer demand. It has already expanded its presence in India and now has bases in three sites in Mumbai, one in Pune and one in Bangalore.