ICT, Property, & Partnerships

ICT & Partnerships	2008 (£m)	2007 (£m)
Turnover	339.4	259.5
Operating profit	35.0	27.7
Operating margin	10.3%	10.7%
Capex	12.2	8.8

2008 Growth and operational update:

We continue to grow this division through major contract wins and a sustained sales focus alongside niche acquisitions to extend our capabilities.

IT Services: This business continues to support a wide and increasing range of external customers, as well as internal contracts and businesses. During the year we completed 2 significant acquisitions – ComputerLand and ABSNet – which have significantly added to and strengthened our capabilities in the desktop and networking markets and we further enhanced our hosting capability by commencing work to significantly increase the capacity of our primary and secondary data centres.

Local Government Strategic Partnerships: We have continued to deliver improved services, quality regeneration projects, savings generated through ICT and process efficiencies and improved purchasing initiatives across our partnerships. Our new partnerships which started in 2007 with Southampton and Swindon Councils are progressing well following smooth transfers of people and services.

• Service Birmingham: We continue to drive efficiency through innovation as part of our joint venture with Birmingham City Council. In 2008,we were awarded a contract worth £110m over 8 years to manage their contact centre, supporting the Council's 'Customer First' transformation programme.

• Swindon: Delivered integrated Customer Services One Stop Shop and Call Centre with significant improvements in customer service and public perception. ICT Transformation substantially completed with the implementation of new infrastructure and hardware.

• Southampton: The partnership has created a new Gateway and Customer Services Centre as part of the commitment to enhance the customer experience of Council services.

Health services: We successfully won the contract to deliver NHS Choices, the NHS' online presence, and have started work on implementing the digital and content requirements. This win provides a platform for further growth in the health marketplace.

Offshore services/Capita India: Our offshore operation continues to play a significant role in helping to secure major new business. Following the transfer of 1,700 employees from Prudential's Indian operation to Capita in October 2008, we now have 3 sites in Mumbai and have established a new site in Pune. Following the transfer of employees with the AXA deal, we will have approximately 3,600 people in India.

2009 priorities

• With our pool of highly skilled IT staff, we continue to focus on developing our end to end IT service offerings and on successfully integrating our acquisitions, ensuring that our enhanced capabilities are deployed for the benefit of our clients and the Group
• Continue to focus on achieving service improvement through service transformation and applying practical innovations across our strategic local government partnerships
• Continue to grow our offshore operations in India - by the end of 2009 we expect to have over 4,500 staff in India. Establish a new facility in Bangalore to support the new AXA contract and continue to smoothly transition work from new clients and the Group to India.

Property consultancy: Capita Symonds	2008 (£m)	2007 (£m)
Turnover	262.2	231.9
Operating profit	22.8	19.3
Operating margin	8.7%	8.3%
Capex	2.2	2.7

2008 Growth and operational update:

Comprises our property services consultancy, Capita Symonds which is one of the UK's largest and most diverse multidisciplinary consultancies operating in the building design, civil engineering, environment, management and transport sectors.

Throughout 2008 we have focused on increasing margins through changing the mix of our business and accelerating the growth of our expert niche areas of operation.

New business: We have focused our efforts on sustainable sectors and were successful in winning framework and major project commissions in Rail, Education, Highways design and Airport design. We continued to increase our share of Olympic commissions and are now working for LOCOG, ODA and LDA at a strategic level.

Partnerships: We successfully created new property partnerships with Sefton MBC and Glamorgan Consultancy. We are providing key services as part of the Group's contracts with local authorities in Southampton, Swindon and Sheffield. Over the year we have reinforced our position as the leading property provider to local government.

Acquisitions: We continued to expand our capability and reach through acquisitions – Lovejoy, Pearce Buckle and NRM Bobrowski. These have all been integrated well into our business and operate within extremely resilient markets. They have all out performed our expectations.

2009 priorities

• Explore opportunities for winning and establishing further local government partnerships as pressure is applied to local government budgets and there is an increased focus on cost efficiencies
• Build upon our design frame work wins for CrossRail and focus on increasing our profile and role in essential infrastructure projects
• Continue to acquire small to medium sized businesses in resilient sectors where they will add value to our consultancy
• Focus on increasing our capability in critical infrastructure programme management
• Reduce exposure to activities in areas more sensitive to the economy, such as corporate fit out, by continuing to transfer employees and reduce headcount
• Focus on assisting clients to dramatically reduce carbon emissions on all work across the UK. Aim to have 70% of all new projects at zero carbon status by 2012. Focus on delivering carbon positive solutions by 2015.