The Capita Group Plc has been awarded preferred bidder status by Southampton City Council for a 10-year business process outsourcing project worth an estimated 290m pounds ($570m).
The deal has not yet been finalized and is dependent on a decision by local government councilors to be made in July. Should Capita get the go-ahead, it expects to commence providing services in October. Capita had been up against BT for the deal until it dropped out of the bidding process in November.
The project includes customer services, human resources, and procurement services, and 600 council employees are expected to transfer to Capita under TUPE regulations. Workers voiced their displeasure in advance of Capita’s announcement when on Tuesday they took industrial action.
Capita claims that the people and business of Southampton will benefit from the creation of a one-stop shop that will be the first point of contact for all council services.
The announcement comes just weeks after Capita announced the signing of a similar UK deal with Swindon Borough Council.