Re Contract

Capita Group PLC
21 May 2007



   Service Birmingham to support additional customer services transformation
                   programme budgeted at £142m over 10 years


In December 2005, Birmingham City Council chose Capita as their strategic
partner to support business transformation and ICT within the Council. A special
purpose vehicle, Service Birmingham, was set up by Capita and a 10 year, £475m
contract to deliver ICT transformation was signed in April 2006. Governance
arrangements were also put in place for additional business transformation
programmes to be proposed and implemented.

In July 2006, we announced that Service Birmingham would support the first
additional business transformation programme to be approved. The programme is
focused on Corporate Services and has an allocated budget of £88m over 3 years.

Today, Capita is pleased to announce that the business case for the second of
these programmes, to transform Customer Services, has been approved. This
additional programme has been allocated a budget of £142m over 10 years.
Delivery of the Customer Services transformation programme will again be
supported by Service Birmingham and its sub-contractor Axon.

Deputy Leader, Councillor Paul Tilsley said: 'Birmingham City Council is
dedicated to delivering the highest levels of customer service and value for
money to its citizens. Through Service Birmingham smarter, more efficient ways
of working are being established which have already generated significant
savings. These improvements are creating a more vibrant, inclusive and
forward-thinking city to live in and will place Birmingham at the forefront of
transformational government.'

Paul Pindar, Chief Executive of the Capita Group Plc commented: 'This unique,
growing partnership is creating a robust platform for modernising and
integrating local public services. The Customer Service programme is the next
key step in visibly bringing benefits to the people of Birmingham. We are
delighted to be working closely with Birmingham City Council to support these
key programmes and deliver significant benefits to the Council and its
citizens.'

The Service Birmingham partnership was created to deliver a wide range of
services to support the Council's business transformation strategy. The
partnership is making strong progress. Over 500 Council employees have been
seconded to Service Birmingham and the new ICT network has increased stability
and significantly cut costs of service delivery. The first business
transformation programme to transform Corporate Services (including procurement,
finance and business management) has already delivered significant efficiencies.
This programme has saved the Council £9.5m and is due to generate savings of
£800m over 10 years. The new Customer Services programme aims to transform the
way in which the Council interacts with its citizens and stakeholders both to
increase customer satisfaction and to release capacity to support investment in
front line service delivery. Business cases for further transformation
programmes, including people management, information management, children's
services and property are currently being developed.

                                     -Ends-

For further information please contact:

The Capita Group Plc        [phone]
Paul Pindar, Chief Executive
Shona Nichols, Corporate Communications Director

Capita press office
Tel: [phone]

Notes to editors

The Capita Group Plc is the UK's leading provider of integrated professional support 
service solutions. The Group's service capabilities encompass business process outsourcing, 
(BPO), customer services, administration and support, human resources, ICT, property 
consultancy, finance & treasury and consultancy delivered to both public sector and 
private organisations. With 27,800 employees at more than 250 offices across the UK, 
Channel Islands, Ireland and India, Capita is quoted on the London Stock Exchange 
(CPI.L), and is a constituent of the FTSE100 with revenues for 2006 of £1,739 million.

Further information on The Capita Group Plc can be found at: www.capita.co.uk




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