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21 May 2013

Capita selected by O2 to form 10 year partnership

Capita today announces that it has been selected by leading communications company Telefónica UK (O2) as their preferred bidder to form a 10 year strategic partnership for customer management services.

The deal, which builds on Capita's existing long-term partnership with O2, will see Capita run and manage O2's customer service centres and support O2 as it enhances and expands its digital service offering to customers. Final negotiations are now taking place, with the 10 year contract expected to be worth approximately £1.2 billion and due to commence on 1 July 2013.

Paul Pindar, Chief Executive Officer, Capita, said: "O2 is a brand renowned for its innovative and bold approach to delivering services and, as a result, has a loyal customer base. Capita will design an enhanced service around customers' evolving needs, introduce new capabilities quickly and ensure that customers' experiences continue to be excellent. We will build on our existing long term relationship with O2 through `best of breed' technology platforms which support service flexibility, quality and efficiency. Close partnership working with O2 will enable us to adapt our customer management services to seamlessly match developments in O2's service offering.

"Today's announcement demonstrates the added value we can deliver to our clients through deploying our industry leading customer management services capabilities and extensive operational delivery infrastructure and drawing on our experience of the evolving digital landscape."

Capita delivers a range of customer management services for private and public sector clients including multi-channel customer support, sales and customer acquisition, debt collection, customer retention and revenue growth and technical support, all underpinned by data-driven analytics and customer-centric service design. It provides services to a wide range of organisations across a range of sectors, including British Gas, Debenhams, Department for Work and Pensions, Severn Trent Water and National Trust.

Update on revenue growth for 2013 since Capita's recent IMS

Following this contract announcement today, Capita has secured over £2.0bn of major new and extended contracts to date in 2013. Accordingly, it now expects to achieve greater than anticipated organic growth for the full year 2013 and currently has visibility of at least 8% organic revenue growth. This also means that Capita is now undertaking a record volume of new contract implementations (including its 2 largest ever contracts with Staffordshire County Council and O2) with their associated start up costs in 2013.

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