Birmingham extends Capita deal

Birmingham City Councilhas confirmed it has signed a five year contract extension and expansion with Capita Group, delivered through the organisations’ joint venture, Service Birmingham.

The ICT and contact centre services contract will now run through to March 2021, with Service Birmingham also responsibility for the Council’s revenue services for a period of 10 years, starting 1 April 2011. The new deal is worth approximately £300 million to Capita, and it’s hoped it will deliver £55 million in savings for the Council over the contract period, on top of the £69 million already expected during the duration of the original contract.

 

“We understand the challenges that the public sector is facing in delivering efficiency savings and also improving services,” said Paul Pindar, CEO at Capita. “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.”

 

Councillor 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.”