Re Contract

Capita Group PLC
1 June 2001

01 June 2001



     Capita Selected to Drive Croydon's Innovative Customer Focus Project



The Capita Group Plc ('Capita') is pleased to announce that it has been
appointed as preferred strategic partner to the London Borough of Croydon ('
the Council') to lead the development of its ground breaking Customer Focus
Project.  The 7 year contract, worth approximately £100 million, will involve
the transfer of a number of existing services and the transformation of
customer facing services and their support infrastructure.  The Council is now
in negotiation with Capita to finalise the partnership and contractual
arrangements.



Capita will lead the development, delivery and management of the customer
services and associated infrastructure of the Customer Focus Project.  The
company will play a major part in supporting the implementation of the
necessary cultural and systems changes required within the Council.  The
Project will focus on modernising existing communications channels and
radically overhauling the corporate and community access IT infrastructure.
Staff will transfer to Capita from the Council and existing suppliers and a
substantial number of new jobs are expected to be created in the area as a
direct result of the service.



Rod Aldridge, Executive Chairman of Capita, commented:



'Capita welcomes the opportunity to work with Croydon Council who share our
drive and commitment for innovation, modernising government and providing
excellence in customer services.  Croydon is leading the way forward in the
implementation of e-government to enhance people's experience of the Council
and its services.  The development of an integrated gateway for the public to
access their services will put the Council at the forefront of customer
responsive public services, transforming service delivery for the benefit of
the community and everyone working for and with the Council.  Capita has a
proven track record in the development and implementation of large-scale
customer service operations in both the public and private sectors and we look
forward to utilizing these skills in working with Croydon on this exciting
project.'



Jan Willis, Director of Finance and IT at Croydon Council, commented:



'The Customer Focus Project is a very important development for the Council,
which aims to create better connections with the public, with other
organisations and within the Council.  The appointment of Capita, with their
considerable experience in this area, moves us a large step nearer to
fulfilling one of our key aims - improving services and making it easier for
local people to access them.



'The Council is committed to a modernisation programme, which will create a
model Borough where citizens, their communities and local businesses are
informed, involved and connected to the Council. While some councils have
piloted elements of the Croydon vision, none have implemented a programme as
far-reaching as the Customer Focus Project.  The project will act as a beacon
for the national programme of modern local government delivered through
partnership.'



Key elements of the project include:



*       Creation of an advanced customer contact centre:  this will radically
improve the customer experience of contacting the Council - providing one stop
shop access to all council services including Housing, Environmental Services,
Education and Social Services. Access to information and services will be
through personal contact, local walk in one-stop-shops, electronic kiosks,
telephone, email, post and fax.



*       Upgrading of IT infrastructure:  Capita will assume responsibility for
all existing IT infrastructure, including systems integration, desktop,
servers and networks. Systems will be radically upgraded to support the 'new
world' of integrated information sources and to significantly increase the
efficiency of the Council as a whole.



*       Implementing a new social services system:  Inter-Agency working will
be greatly improved through development of internet based information services
and new working relationships.



*       Development of a regional business centre: Capita will use this new
infrastructure to deliver services to other clients in Greater London. Capita,
across its UK Business Centre infrastructure, has successfully demonstrated
the benefit of economies of scale, including better access to skills and
technology, more cost effective solution for customers and greater
opportunities for employees.  Such centres also act as a catalyst for inward
investment and job creation in the local communities.



Future developments to the service will focus on extending access to
communities through the use of new and emerging technologies such as Digital
TV, web and WAP.



                                    -ENDS-



For further information:

The Capita Group Plc
     020 7799 1525

Rod Aldridge, Executive Chairman

Paul Pindar, Chief Executive

Shona Nichols, Group Marketing Director

Press Office
         020 7544 3141



Issued by

Hogarth Partnership
       020 7357 9477

John Olsen/James Longfield



Notes to Editors

The Capita Group Plc is one of the largest and fastest growing professional
support services organisations in the UK. Capita provides an integrated range
of professional support services on long-term contracts across the private
sector, local and central government and education in the UK.  With over
11,000 people working across a network of over 120 sites, generating a
turnover in excess of £450 million, Capita's achievements promoted it to the
FTSE 100 in 2000. Capita's capability spans leading edge customer and
administration services, HR services, IT and strategic support, software and
property consultancy. For further information please visit our web site:
www.capita.co.uk