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6. Central government

Capita works with Government departments to help them improve the quality, efficiency, capacity and co-ordination of frontline public services and essential support services.

The Government's 2007 Comprehensive Spending Review is in its first year and an election has to be called before May 2010. While the flow of new service initiatives and projects is expected to decrease, a good number of large, legislatively backed projects will still have be competed by then. There is also a steady flow of second generation outsourcing contracts that must be put out to re-tender under EU competition law.


Drivers for outsourcing include:

  • The challenging goals of the 2007 Comprehensive Spending Review, including 3% annual efficiency targets and establishing shared services
  • Increased pressure on Whitehall to deliver efficiencies and value for money and as a result of the Government's 2008 Pre-Budget Report
  • HM Treasury's Operational Efficiency Programme, reporting in Spring 2009 and expected to put additional direction and momentum behind the Government's efficiency agenda
  • Possible need to prioritise new, short term investment in infrastructure projects to help alleviate growing unemployment
  • Continuing requirement to build and modernise public infrastructure – e.g. transport, Building Schools for the Future
  • Key service priorities: children's services, regulatory compliance, public safety, economic regeneration and transport
  • Need for government and public services to enhance UK's global competitiveness.

3% annual growth to 2012 estimated by industry analysts*

*Ovum 2008