BBC HR Contract

Capita Group PLC 16 February 2006 16 February 2006 BBC appoints Capita for 10 year HR outsourcing contract The BBC has announced today that it has selected Capita as its preferred supplier, for a 10-year HR Services Contract, expected to be worth over £100m over the term of the contract. The deal means Capita will work closely with BBC People, the department responsible for the BBC's people strategy, to deliver many of the BBC's HR services across the corporation for the next 10 years. The service centre for the new arrangement will be located in Belfast, currently one of the Capita centres for BBC activity. Around 260 jobs will be transferring to Capita and 100 new jobs will be created in Belfast. The BBC expects to save in excess of £50m over the life of the contract. Under the new contract Capita will deliver a full range of HR services to the BBC including recruitment; the administration of pay (excluding pensions); some aspects of staff development; occupational health and other services. The contract with Capita is due to become operational from April 2006, subject to contract signature. Stephen Dando, Director, BBC People, BBC, commented: 'This deal marries both our expertise in Human Resources with the resource and expertise of a leading player in business process outsourcing. The value created from this deal is a significant step for us in ensuring the BBC is fit for the future and continues to invest in creating innovative programmes and services for our audiences. But this deal is about much more than that, it is about creating the right platform for BBC People to enhance its strategic and valued contribution to the BBC. We look forward to strengthening our relationship with Capita to deliver our HR vision over the next decade.' Rod Aldridge, Executive Chairman of the Capita Group Plc, said: 'Capita is delighted to have been chosen to support the BBC in delivering their HR services to meet the current and future needs of the corporation. Capita's service transformation skills and breadth of HR services, combined with the expertise of BBC People, will enable us to deliver enhanced services alongside significant cost efficiencies. We look forward immensely to working with BBC People and extending our already strong relationship with the BBC.' Ends For further information please contact: Shona Nichols, Corporate Communications Director The Capita Group Plc 020 7799 1525 The Capita Press Office 0870 2400 488 BBC Press Office 020 8576 1865 Notes to Editors Capita is an existing strategic partner for the BBC and already provides a range of services including licence fee collection. The contract is for a period of 10 years with the option to break at year 5. The procurement process follows an internal BBC People review which proposed that a number of services should be outsourced. The review team identified this as one of the measures to help put extra resources into programmes as part of the BBC's radical plans to transform the organisation into a simpler and more creative digital broadcaster. About BBC People Division • BBC People was formed in 2001, bringing together for the first time the vast majority of the BBC's functional HR specialists. The Division supports the whole employment process. It supports around 25,500 BBC staff, and casually engaged individuals based within multiple UK locations and internationally, and deals with the significant 'churn' associated with new hires/leavers. • Around 260 BBC employees will be transferring to Capita • Around 100 jobs will be created in Belfast • Details of the BBC HR services for procurement: Recruitment: Full recruitment process including attracting and selecting candidates, offers, recruitment marketing (including events and work experience) and contract administration. Remuneration: Including pay administration and transaction, benefits administration (excluding pensions), pay and benefits enquiry management. Development: Specifically, 360 degree assessment and feedback, outplacement, training and development for broadcast engineering skills, technical services. HR administration services: HR process administration, provision of HR information, guidance on HR processes and routing of other enquiries. Relocation: Management of relocation assignments. Occupational health services: For example, sickness and absence management, risk management, case management, ergonomics advice, physiotherapy, health education and overseas travel. Disability access services: Provision of assessments and facilitation and other access support to disabled staff. About Capita The Capita Group Plc is the UK's leading provider of business process outsourcing and professional support services. The Group's service capabilities encompass administration and customer services, financial services, human resource services, ICT and software services, property services, advisory services, change management and business process re-engineering delivered to both public sector and private organisations. With over 25,000 employees at more than 240 offices across the UK, Ireland and India, Capita is quoted on the London Stock Exchange (CPI.L), and is a constituent of the FTSE100 with revenues for 2004 of £1,285 million. Capita employs over 2,500 HR professionals and provides complete end to end managed HR solutions as well as standalone services. Our broad HR capability spans HR administration, payroll, recruitment, outplacement, benefits, training, pensions administration, occupational health services and consultancy. Capita has been a service delivery partner of the BBC's since 1998, administering the BBC Information Service since then and administering the TV Licensing service since 2002. Capita has secured a number of awards including Best BPO Services Provider 2004. Further information on The Capita Group Plc can be found at: www.capita.co.uk This information is provided by RNS The company news service from the London Stock Exchange

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