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Capita Group PLC (CPI)

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Friday 11 January, 2008

Capita Group PLC

Re Contract

Capita Group PLC
11 January 2008



11 January 2008

                         CAPITA SELECTED BY MARSH LTD
                AS PREFERRED OPERATIONS OUTSOURCING PARTNER



•        Agreement worth circa £200 million over 10 years, subject  to contract,
to enhance service delivery and generate significant cost savings

•        Current offshore work to transfer to Capita's offshore facilities


The Capita Group Plc ('Capita') announces that it has been selected by Marsh Ltd
('Marsh') as preferred partner to transform and deliver Marsh's services, based
in Norwich.  Subject to final negotiations, the contract to deliver Marsh UK's
back office administration functions is estimated to be worth approximately £200
million to Capita over 10 years.


Under the agreement, Capita will provide support and processing services to
enhance Marsh's broking activities to clients across its business. Marsh UK
operations are based in Norwich with some offshored services delivered by an
external provider in India.


Following due consultation, approximately 650 Marsh employees will transfer
under TUPE to Capita and the current offshored work will be transferred to
Capita's offshore facilities. Final contract negotiations are underway and
service commencement is anticipated to be early April 2008.



Capita will undertake a comprehensive transformation programme to enhance
service provision to Marsh and its clients while delivering significant
reductions in both business unit and transactional operating costs. Alongside
this service transformation, Capita will create a service centre based in
Marsh's existing Norwich premises with the capacity and expertise to support
other work.



Paul Pindar, Chief Executive of The Capita Group commented: 'Capita is delighted
to be entering this partnership with Marsh, which we believe will provide
significant value to both organisations. Our service re-engineering expertise
combined with our extensive London insurance market knowledge will enable us to
enhance the competitiveness of Marsh in the UK and global insurance markets. The
Marsh management team have made strong headway in laying the foundations for
service transformation and we look forward to successfully building on this
together.'



Martin South, CEO of Marsh UK added: 'We have selected Capita as our preferred
partner due to its excellent track record of service transformation and delivery
in the insurance and wider financial services markets. Capita's proposal
provides us with an exciting opportunity to enhance our service quality at
reduced cost. Capita has clearly demonstrated their ability to add real value to
Marsh both immediately and to support our ambitions.'


                                 -ends-


For further information:

The Capita Group Plc
Tel: 020 7799 1525
Paul Pindar, Chief Executive
Shona Nichols, Corporate Communications Director

Capita press office:
Caroline Mooney
Tel: 0207 654 2152 or 0870 2400 488 out of hours

Marsh:
Jason Groves
Head of media relations
Tel: 020 7357 1455


Note 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 30,000 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



Marsh, the world's leading insurance broker and risk advisor, has 26,000
employees and provides advice and transactional capabilities to clients in over
100 countries. Marsh is a unit of Marsh & McLennan Companies (MMC), a global
professional services firm with more than 54,000 employees and approximately $11
billion of annual revenues. MMC also is the parent company of Guy Carpenter, the
risk and reinsurance specialist; Kroll, the risk consulting firm; Mercer, the
provider of HR and related financial advice and services; and Oliver Wyman, the
management consultancy. MMC's stock (ticker symbol: MMC) is listed on the New
York, Chicago and London stock exchanges. MMC's Web Site is www.mmc.com.
Marsh's Web site is www.marsh.com.





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