Serco to handle customer contact for Shop Direct

Outsourcing specialist Serco is set to put pen to paper on a business process outsourcing (BPO) contract with online and home shopping outfit Shop Direct Group.

The ten-year contract will start on July 1st 2012 and has a total estimated value to Serco of around £430m.

Serco will assume responsibility for managing customer contact across Shop Direct's brands, with the change in responsibilities being phased in over the first two years. The timing of costs associated with implementing transitional arrangements are expected to drive an additional working capital out flow for Serco estimated in total at around £25m over the initial two years.

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

A consultation period regarding the TUPE (employment protection) transfer will begin shortly with the individuals affected by these proposals and their trade union and management representatives. The TUPE transfer date is July 1st 2012.

JH