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Capita Group PLC (CPI)

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Thursday 26 June, 2008

Capita Group PLC

Capita and Marsh complete deal on operations ou...


26 June 2008

                       Capita and Marsh complete deal on operations outsourcing                             

  * Agreement signed, worth £187 million over 10 years, to enhance service
    delivery and generate significant cost savings
   
  * Marsh's existing offshore work to transfer to Capita's offshore facilities
   
The Capita Group Plc (Capita) and Marsh Ltd (Marsh) have today signed a deal to
deliver and transform Marsh's UK operations. The contract will be worth £187
million to Capita over 10 years. Capita announced that it had been selected as
preferred bidder by Marsh on 11 January this year.

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

Approximately 600 Marsh employees will transfer under TUPE to Capita and the
current offshored work will be transferred to Capita's new offshore facility in
Pune, India. Service commencement will be 1 July 2008.

Capita will undertake a comprehensive transformation programme to enhance
service provision to Marsh and its clients while delivering significant
reductions in operational transaction costs. Alongside this service
transformation, Capita will create a centre of excellence for insurance
outsourcing services based in Marsh's existing Norwich premises. The capacity
and capability within this centre will primarily be used to transform Marsh's
UK operations. Over time, options to utilise this facility for other Marsh and
Capita insurance activities will be considered.

Paul Pindar, Chief Executive of The Capita Group, commented: "This partnership
will draw upon Capita's technical expertise across the insurance market and
service re-engineering capabilities across the wider financial services
industry. An integrated operating infrastructure will deliver cost and quality
benefits alongside enhanced customer service and provide a flexible platform
for Marsh's current and new business. The work will continue to be delivered
from a Norwich base and we look forward to welcoming all staff who transfer to
Capita."

Martin South, CEO of Marsh UK, said: "We are very pleased to have established
this partnership with Capita and are confident it will be beneficial to both
our clients and our staff. In particular, it will transform the way in which we
do business, supporting our commitment to providing a customer experience
that's truly world-class. It will also give our staff increased opportunities
for career development."

-ends-

For further information:

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

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 customer
services, financial services, human resource services, software services,
systems and strategic support and property services delivered to both public
sector and private organisations.  With over 29,000 employees at more than 300
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 2007 of
£2,073 million.

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

About Marsh

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 55,000 employees and annual revenue
exceeding $11 billion. MMC also is the parent company of Guy Carpenter, the
risk and reinsurance specialist; Mercer, the provider of HR and related
financial advice and services; Oliver Wyman, the management consultancy; and
Kroll, the risk consulting firm. 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.