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Capita Group PLC (CPI)

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Thursday 01 December, 2011

Capita Group PLC

BBC selects Capita to administer TV licensing


1 December 2011

BBC selects Capita as preferred partner to administer TV licensing for a
further 8 years

The Capita Group Plc (`Capita') has been selected by the BBC as its preferred
partner to administer the TV Licensing service for an 8 year term under a
contract expected to be worth approximately £560m. The contract is due to be
signed in early December with a commencement date of 1 July 2012.

Capita will re-engineer the current service delivery model and harness advances
in technology and analytics to increase the TV Licensing revenues collected,
while also reducing the current servicing costs. The new contract represents
cost savings of over £220m for the BBC over the life of the contract.

Capita will be working closely with iQor and CSC and in partnership with the
BBC to create an innovative, customer-focussed service that can be delivered
more cost effectively while consistently meeting the high expectations of the
BBC and its customers. iQor's cash payment services will be fully integrated
with the wider service to create an optimal end-to-end service and CSC will
continue with modernising the existing IT systems to create greater flexibility
to meet future requirements.

Commenting on the announcement, Capita Group CEO, Paul Pindar, said: "Through
our current contract we have consistently delivered real value to the BBC,
helping to drive down evasion and increase revenues collected. We now have an
opportunity to build on these achievements and look forward to introducing
additional innovation and techniques to deliver a highly customer centric
service that creates further value to the BBC and its customers."

Zarin Patel, BBC Chief Financial Officer, said: "This contract represents great
value for the licence fee payer. Capita's bid was the best both in terms of
innovation and efficiencies and so offered best value for money. The success of
recent efforts by the BBC and TV Licensing to encourage people to pay via
Direct Debit and use self-serve channels such as the web has enabled us to
re-structure the new contract to realise the savings benefits. Additionally,
savings have been achieved by consolidating what were previously two
contracts."

                                    -ends-                                     

For further information:

The Capita Group Plc

Tel: 020 7799 1525

Paul Pindar, Chief Executive

Shona Nichols, Corporate Communications Director

Media enquiries

Caroline Mooney, director

Capita Group media relations

Tel: +44 207 654 2152 or +44 207 654 2399 (out of hours)

Email: caroline.mooney@capita.co.uk

Notes to editors:

The Capita Group Plc is the UK's leading provider of BPO and integrated
professional support service solutions.  With around 45,000 employees at more
than 350 sites, including 64 business centres across the UK, Ireland, the
Channel Islands and India, the Group uses its expertise, infrastructure and
scale benefits to transform its clients' services, driving down costs and
adding value. Capita is quoted on the London Stock Exchange (CPI.L), and is a
constituent of the FTSE100 with revenues for 2010 of £2,744 million.  Further
information on The Capita Group Plc can be found at: http://www.capita.co.uk

CSC is a global leader in providing technology-enabled business solutions and
services. Headquartered in Falls Church, Va., CSC has approximately 97,000
employees and reported revenue of $16.2 billion for the 12 months ended
September 30, 2011. For more information, visit the company's website at 
www.csc.com

iQor (www.iqor.com) provides business process outsourcing to some of the
best-known companies in the world from 31 Centers of Excellence in five
countries and four continents. iQor's nearly 14,000 employees work with
state-of-the-art technology that affords maximum flexibility to iQor customers
to tap the best skills of a global workforce. It serves clients from a range of
industries including financial services, telecommunications and government. Its
services include customer care, customer retention and revenue recovery.