The Channel

Capita appoints back bencher baroness as non exec director

Could it be eyeing up more public sector deals?

By Kat Hall


Public sector outsourcing favourite Capita has appointed House of Lords backbencher Lucy Neville-Rolfe as independent non-executive director.

Baroness Neville-Rolfe previously served as Commercial Secretary to the Treasury, a Minister of State, and as Minister of State for Energy and Intellectual Property.

Capita remains the largest supplier of tech services to the public sector, with total revenue of £1.9bn in 2016, giving it a 50 per cent share of government spending in the area - according to research from TechMarketView.

However, not everyone has been happy with the outsourcer's performance.

Barnet council signed a controversial £322m 10-year outsourcing deal with the outsourcer, although a report into the deal found the service had been plagued by "performance issues" particularly within IT, it found the deal yielded "significant savings".

More recently Barnet UNISON issued a warning to members about the Pension Service provided by Capita.

Branch Secretary John Burgess said: "Not only am I unhappy with Capita, but also with the council, which agreed this outsourcing model." He said the service had become fragmented. "They have long gone and left us with a service in which we have no confidence."

The Register has asked Capita for a comment.

But despite Capita continuing to rake in government cash, the biz has fallen on relatively hard times. (Cue the world's tiniest violin).

For the first half of 2017, pre-tax profits fell 26 per cent, from £37m the previous year. That is on the back of 2,250 jobs losses just before Christmas last year.

No doubt the outsourcing giant hopes the appointment of Neville-Rolfe will help to steady the ship.... and maybe boost its public sector offering.

Chairman Ian Powell said: "We are delighted to welcome Lucy to the Capita board. Her appointment is part of our strategy to improve our governance with the addition of a highly experienced and qualified non-executive director.

"Lucy's extensive board and senior leadership experience, including her in-depth knowledge of the regulatory and governance aspects of business, adds further depth and strength to our team and we very much look forward to her contribution." ®

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