Capita Enters HR BPO Fray With 10-Year BBC Contract

This IDC Flash takes a look at the recently announced award of a 10-year HR BPO contract to Capita by the BBC, the implications of this deal for the U.K. HR BPO market, and the likely impact of the announcement on the competitive landscape in the U.K.

Announcement Highlights

On February 16, 2006, the BBC announced that it had selected Capita as its preferred supplier for a 10-year HR services contract, expected to be worth over 100 million ($180 million) over the term of the contract. 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 50 million ($90 million) over the life of the contract. The contract with Capita is due to become operational from April 2006, subject to contract signature.