Uptick in public sector activity boosts Capita

BUSINESS processing outsourcing firm Capita said yesterday it had benefited from an uptick in outsourcing activity from local governments, as it said it saw a “buoyant” public sector this year.

The group, which runs contracts ranging from civil service training schemes to disability assessments, said there was a “good flow of opportunities” from both public and private markets, although it was the public sector, with “significant activity” across local and central governments, that will provide it with momentum into 2013.

It has benefited from increased activity from the Ministry of Justice and Ministry of Defence, but also across the emergency services and health markets in particular.

In the private sector, Capita said it had seen a high level of demand for customer management services and for back office support, notably from the retail, utilities, telecoms and financial services sectors.

So far this year, the outsourcing company has netted 33 major sales contracts worth £1.7bn, with the bid pipeline standing at £4bn. Major projects so far this year worth more than £50m include those with West Sussex County Council Support Services and North Tyneside Council, Capita said yesterday.

Capita chief executive Paul Pindar said that thanks to the major contract wins, the firm is on track to deliver organic growth of three per cent for 2012, and six per cent in 2013.