Capita establishes a £50m local service partnership

Outsourcing gained another boost today when Norfolk County Council said it could only meet the standards it wanted to, by linking with a private sector partner. The council has chosen the Capita Group Plc, the professional support services organisation, as its preferred strategic service partner in a deal that has been valued in excess of £50m.

The 10-year contract includes the supply of services traditionally associated with core business including IT, payroll, pension and exchequer services. Capita have gained extensive experience in this field through working with other county councils for the delivery of integrated services including Kent, Hertfordshire and Coventry.

The group will be working closely with Norfolk Council to enhance core business operations within the working structure. In support of this, Capita is establishing a Norwich Business Centre incorporating a customer service call centre with advanced business processing which reflects the requirements of the 'Modernising Local Government Agenda'.

Tim Bayles, chief executive of Norfolk county council said: "It is vital that our front-line services receive the best possible information technology and professional support, but with rapid developments in technology and the demand for IT staff, it has become clear that this can only be achieved by linking up with a private sector partner."

Under the contract, Capita will provide payroll services for 33,000 council staff, administer over 12,000 pensions and process in excess of half a million accounting transactions. The contract as well as maintaining secure employment for council staff will create opportunities for developing additional business for the centre and will bring over 150 new staff to Capita who will transfer under TUPE this month.

Rob Aldridge, executive chairman of the Capita Group Plc said: "This long term partnership provides the right framework and timescale to allow investment and innovation to achieve significant steps forward in delivering services."

Julie Crisp