Capita scores O2 contract and ups growth guidance for full year

Outsourcing giant Capita has been selected by O2 as their preferred bidder to form a 10-year strategic partnership for customer management services.

The group also announced that following the deal it has now secured over £2.0bn of major new and extended contracts to date in 2013 and as such expects to achieve greater-than-anticipated organic growth for the full year 2013, with current visibility of at least 8.0% organic revenue growth.

Under the agreement, Capita will enhances and expands its digital service offering to customers. Final negotiations are now taking place, with the contract expected to be worth approximately £1.2bn and due to begin at the start of July.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

Paul Pindar, Chief Executive Officer, Capita, said: "O2 is a brand renowned for its innovative and bold approach to delivering services and, as a result, has a loyal customer base. Capita will design an enhanced service around customers' evolving needs, introduce new capabilities quickly and ensure that customers' experiences continue to be excellent.

"We will build on our existing long term relationship with O2 through `best of breed' technology platforms which support service flexibility, quality and efficiency. Close partnership working with O2 will enable us to adapt our customer management services to seamlessly match developments in O2's service offering.

"Today's announcement demonstrates the added value we can deliver to our clients through deploying our industry leading customer management services capabilities and extensive operational delivery infrastructure and drawing on our experience of the evolving digital landscape."

NR