Capita appoints back bencher baroness as non exec director

Could it be eyeing up more public sector deals?

By Kat Hall

Posted in The Channel, 6th December 2017 12:58 GMT

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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