Capita said it expects a record year for major contract wins as more organisations look to drive down costs by outsourcing their operations.
The group, which administers the licence fee for the BBC and provides a criminal records service for the Home Office, employing over 8,500 people in Yorkshire, has been buoyed by 16 new and extended contracts totalling £1.26bn in the year to date. With a number of major bid decisions due in the current quarter, Capita expects it will double the level of contract wins seen in 2010 and surpass the best ever year in 2007, when it secured £1.9bn of major business.
However, it continues to see pressure on spending from existing customers, which has affected its operations in property, resourcing and some IT. As a result, revenues stripping out the impact of acquisitions will be seven per cent lower in 2011, in line with the trend reported in the summer. However, when including the 19 new businesses acquired for a total of £334m during the year, the figure reverses to show a rise of seven per cent.