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Capita Group PLC (CPI)

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Thursday 16 February, 2006

Capita Group PLC

BBC HR Contract

Capita Group PLC
16 February 2006

16 February 2006

            BBC appoints Capita for 10 year HR outsourcing contract

The BBC has announced today that it has selected Capita as its preferred
supplier, for a 10-year HR Services Contract, expected to be worth over £100m
over the term of the contract.

The deal means Capita will work closely with BBC People, the department
responsible for the BBC's people strategy, to deliver many of the BBC's HR
services across the corporation for the next 10 years. The service centre for
the new arrangement will be located in Belfast, currently one of the Capita
centres for BBC activity. Around 260 jobs will be transferring to Capita and 100
new jobs will be created in Belfast.

The BBC expects to save in excess of £50m over the life of the contract.

Under the new contract Capita will deliver a full range of HR services to the
BBC including recruitment; the administration of pay (excluding pensions); some
aspects of staff development; occupational health and other services. The
contract with Capita is due to become operational from April 2006, subject to
contract signature.

Stephen Dando, Director, BBC People, BBC, commented: 'This deal marries both our
expertise in Human Resources with the resource and expertise of a leading player
in business process outsourcing. The value created from this deal is a
significant step for us in ensuring the BBC is fit for the future and continues
to invest in creating innovative programmes and services for our audiences.

But this deal is about much more than that, it is about creating the right
platform for BBC People to enhance its strategic and valued contribution to the

We look forward to strengthening our relationship with Capita to deliver our HR
vision over the next decade.'

Rod Aldridge, Executive Chairman of the Capita Group Plc, said: 'Capita is
delighted to have been chosen to support the BBC in delivering their HR services
to meet the current and future needs of the corporation. Capita's service
transformation skills and breadth of HR services, combined with the expertise of
BBC People, will enable us to deliver enhanced services alongside significant
cost efficiencies. We look forward immensely to working with BBC People and
extending our already strong relationship with the BBC.'


For further information please contact:

Shona Nichols, Corporate Communications Director

The Capita Group Plc                     020 7799 1525
The Capita Press Office                  0870 2400 488

BBC Press Office                         020 8576 1865

Notes to Editors

Capita is an existing strategic partner for the BBC and already provides a range
of services including licence fee collection.

The contract is for a period of 10 years with the option to break at year 5.

The procurement process follows an internal BBC People review which proposed
that a number of services should be outsourced. The review team identified this
as one of the measures to help put extra resources into programmes as part of
the BBC's radical plans to transform the organisation into a simpler and more
creative digital broadcaster.

About BBC People Division

• BBC People was formed in 2001, bringing together for the first time
the vast majority of the BBC's functional HR specialists. The Division supports
the whole employment process. It supports around 25,500 BBC staff, and casually
engaged individuals based within multiple UK locations and internationally, and
deals with the significant 'churn' associated with new hires/leavers.

• Around 260 BBC employees will be transferring to Capita

• Around 100 jobs will be created in Belfast

• Details of the BBC HR services for procurement:

Recruitment: Full recruitment process including attracting and selecting
candidates, offers, recruitment marketing (including events and work experience)
and contract administration.

Remuneration: Including pay administration and transaction, benefits
administration (excluding pensions), pay and benefits enquiry management.

Development: Specifically, 360 degree assessment and feedback, outplacement,
training and development for broadcast engineering skills, technical services.

HR administration services: HR process administration, provision of HR
information, guidance on HR processes and routing of other enquiries.

Relocation: Management of relocation assignments.

Occupational health services: For example, sickness and absence management, risk
management, case management, ergonomics advice, physiotherapy, health education
and overseas travel.

Disability access services: Provision of assessments and facilitation and other
access support to disabled staff.

About Capita

The Capita Group Plc is the UK's leading provider of business process
outsourcing  and professional support services. The Group's service capabilities
encompass administration  and customer services, financial services, human
resource services, ICT and  software services, property services, advisory
services, change management and  business process re-engineering delivered to
both public sector and private organisations.  With over 25,000 employees at
more than 240 offices across the UK, Ireland and India,  Capita is quoted on the
London Stock Exchange (CPI.L), and is a constituent of the  FTSE100 with
revenues for 2004 of £1,285 million.

Capita employs over 2,500 HR professionals and provides complete end to end 
managed HR solutions as well as standalone services. Our broad HR capability 
spans HR administration, payroll, recruitment, outplacement, benefits, training, 
pensions administration, occupational health services and consultancy.

Capita has been a service delivery partner of the BBC's since 1998,
administering  the BBC Information Service since then and administering the TV
Licensing service since 2002.

Capita has secured a number of awards including Best BPO Services Provider 2004. 
Further information on The Capita Group Plc can be found at:

                      This information is provided by RNS
            The company news service from the London Stock Exchange