The Capita Group Plc ('Capita') announces that Birmingham City Council has
agreed to extend and expand its existing contract with Capita, which is
delivered through Birmingham City Council and Capita's joint venture
partnership, Service Birmingham. The original contract to provide ICT and
contact centre services has been extended by five years to March 2021.
Additionally, Service Birmingham will deliver the Council's revenues service
for a period of 10 years from 1 April 2011. 152 council revenues staff will
transfer to Service Birmingham under TUPE regulations. The contract extension
and expansion is worth approximately £300 million to Capita.
Service Birmingham was created in 2006 to provide ICT and Business
Transformation to the Council for a period of 10 years with the option to
extend for a further five years.
The extension and expansion of the partnership will allow Service Birmingham to
deliver further service improvements and efficiencies that will generate £55
million in savings for the Council over the life time of the contract, on top
of the £69 million already being delivered in the existing contract.
Paul Pindar, Chief Executive, Capita, said: 'We understand the challenges that
the public sector is facing in delivering efficiency savings and also improving
services. Through this long-term partnership between Service Birmingham and
Birmingham City Council, continuing service improvements and cost efficiencies
have been achieved. We are delighted Birmingham City Council has agreed to
extend this contract and we will continue to work together to build upon our
achievements to date and deliver value to the Council and its citizens.'
Cllr Randal Brew, Cabinet Member for Finance at Birmingham City Council, said:
'At a time when we are facing an unprecedented financial challenge, we need to
focus on driving efficiencies and getting value for money. This deal represents
an excellent opportunity to achieve both. We have a successful relationship
with Capita through Service Birmingham and we are confident that extending and
expanding this partnership will mean we are able to continue to modernise
services and meet the challenges we are facing.'