Re Contract

Capita Group PLC
01 December 2005



      Capita recommended as Birmingham City Council's preferred strategic
                             transformation partner

Birmingham City Council's Cabinet will be issued with a report today that
recommends that the Capita Group Plc ('Capita') should become their preferred
strategic partner to deliver a wide range of services to support the Council's
leading edge business transformation strategy. Capita has proposed an innovative
new joint venture (JV), the Service Birmingham Partnership, in which Capita will
have a significant majority shareholding alongside the Council. The JV will be
contracted to deliver a range of services to support the Council's
transformation programme, with an initial ICT contract expected to be worth 
£424 million to the JV over a 10 year partnership (representing the Council's 
current projected spend and investment on ICT and associated services over the 
period).


Subject to approval by Cabinet, the Council will commence detailed negotiations
with Capita to formulate the JV structure that will underlie this long term and
evolutionary partnership. Some 450 staff are expected to be seconded to the JV
and Capita will provide the specialist and flexible resources to accelerate the
successful delivery of the Council's transformation plan. The initial ICT
programme is designed to deliver a world class ICT framework for the future
delivery of services and to provide a robust framework for major service
transformation. Further work is likely to be commissioned through the
partnership to support the Council's services and this will increase the value
of the contract as the partnership incrementally grows and delivers measurable
benefits to the Council and the people of Birmingham.


A Council press release and summary of the recommendation to Cabinet will be
made available on Birmingham City Council's website www.birmingham.gov.uk today.


                                    - Ends -


For further information please contact:

The Capita Group Plc [phone]
Rod Aldridge, Executive Chairman
Paul Pindar, Chief Executive
Shona Nichols, Corporate Communications Director


Press Office [phone]


The Capita Group Plc is the UK's leading provider of integrated professional 
support service solutions. The Group's service capabilities encompass customer 
services, financial services, human resource services, software services, systems 
and strategic support and property services delivered to both public sector and 
private organisations. With over 23,000 employees at more than 230 offices across 
the UK and Ireland, 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 has secured a number of awards including Best BPO Outsourcing Services 
Provider 2004.


Further information on The Capita Group Plc can be found at www.capita.co.uk






                      This information is provided by RNS
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