16 Feb 2006

The BBC has announced today that it has selected Capita as its preferred supplier, for a 10-year HR Services Contract, expected to be worth over £100m over the term of the contract.

The deal means Capita will work closely with BBC People, the department responsible for the BBC's people strategy, to deliver many of the BBC's HR services across the corporation for the next 10 years. The service centre for the new arrangement will be located in Belfast, currently one of the Capita centres for BBC activity. Around 260 jobs will be transferring to Capita and 100 new jobs will be created in Belfast.

The BBC expects to save in excess of £50m over the life of the contract.

Under the new contract Capita will deliver a full range of HR services to the BBC including recruitment; the administration of pay (excluding pensions); some aspects of staff development; occupational health and other services. The contract with Capita is due to become operational from April 2006, subject to contract signature.

Stephen Dando, Director, BBC People, BBC, commented: 'This deal marries both our expertise in Human Resources with the resource and expertise of a leading player in business process outsourcing. The value created from this deal is a significant step for us in ensuring the BBC is fit for the future and continues to invest in creating innovative programmes and services for our audiences.

But this deal is about much more than that, it is about creating the right platform for BBC People to enhance its strategic and valued contribution to the BBC.

We look forward to strengthening our relationship with Capita to deliver our HR vision over the next decade.'

Rod Aldridge, Executive Chairman of The Capita Group Plc, said:“Capita is delighted to have been chosen to support the BBC in delivering their HR services to meet the current and future needs of the corporation. Capita’s service transformation skills and breadth of HR services, combined with the expertise of BBC People, will enable us to deliver enhanced services alongside significant cost efficiencies. We look forward immensely to working with BBC People and extending our already strong relationship with the BBC. ”

For more information on this contact, visit the Capita Group website at http://www.capita.co.uk/Group/InvestorCentre/InvestorNews/BBCappointsCapita+for10yearHRoutsourcing+contract.htm