Wednesday, 10 June 2009

Capita update

(By Anthony Miller – Wednesday 10th June 2009 3:30pm). Capita was not mightily pleased with my headline earlier today (Capita buys Carillion IT Services but loses parent outsourcing deal) as they told me the outsourcing deal was never on the table for them to bid for. Nonetheless, I stand by my observation that it’s not usual for the buyer of a captive not to get the associated outsourcing deal, but clearly it suited both parties to do it this way. Yet Capita/CITS will work with Carillion on some of its BSF (Building Schools for the Future) projects so it’s not a full ‘divorce’.

The rationale for the deal goes beyond reducing Capita’s reliance on third-party IT services partners. It’s also to provide a sharper go-to-market for major IT services bids which have the prospect of a BPO deal further down the line. In other words, get a foot in the door earlier. Good idea.

As for the Capmark acquisition (see Capita buys European financial services group), it seems the German part of Capmark Europe is only tiny and Capita will take a view on its eventual disposition once it has got to grips with the business. Doesn’t sound like there’s any great urgency to sell it, and it’s certainly not a signal that Capita is branching out into Europe.

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