We lead the UK market in business process outsourcing (BPO) – the long term contracting out of business processes to help lower costs and improve service delivery.
We focus on the UK and Ireland, where there are significant opportunities for growth.
A growing market
Independent analysts have estimated that the total
2008 market for BPO in the UK was £5.6bn, against
market potential of £94.2bn a year*. The benefits of
outsourcing are now firmly acknowledged, and the
market is forecast to grow at 9% a year until 2012.*
We are ranked as the BPO market leader in the UK with 25.5% market share.*
| % of turnover |
2008 |
2007 |
| 1. Life and pensions |
16 |
11 |
| 2. Insurance |
8 |
10 |
| 3. Financial services |
5 |
4 |
| 4. Other corporates |
23 |
23 |
| 5. Local government |
20 |
20 |
| 6. Central government |
10 |
12 |
| 7. Education |
11 |
13 |
| 8. Transport |
5 |
6 |
| 9. Health |
2 |
1 |
Strong competitive differentiation
Our scale, flexible infrastructure and expertise allow
us to offer compelling service solutions across each of
our chosen markets. Our clients benefit from reduced
costs, improved business processes and better services
to offer their own customers. Our reputation for
innovative business transformation and consistent
service delivery enables us to compete strongly in our
marketplace.The long term contracts we secure, and
our high contract renewal rate, evidence our clients'
satisfaction and in turn help us secure further business.
In our chosen markets we tend to bid against differing
groups of fairly stable competitors. Increasingly, clients
are seeking outsourcing partners with the scale,
expertise and financial stability to deliver a complex
range of services under long term contracts. Capita has
the breadth of service offering, expertise and resource
to meet these needs. Many of our competitors are
focused on a single service offering and so may have to
bid in consortium for more complex contracts.
Our focus on the UK and Ireland has allowed us to
develop a detailed understanding of our chosen
markets and the key drivers for outsourcing in each
sector.This market knowledge, alongside our scale
and our core skills in change management, ICT and
business process transformation, gives us competitive
advantage.
Competitor rankings UK BPO market*
|
% market share |
| |
2008 |
2007 |
| Capita |
25.5 |
22 |
| Accenture |
6.8 |
6 |
| Xchanging |
6.4 |
5.1 |
| EDS |
5.5 |
6 |
| Vertex |
4.4 |
7 |
9 diverse and growing markets
As well as being the UK's leading provider of BPO,
business transformation and professional support
services, we are number one in most of our sector
markets. We currently operate in 9 distinct markets
where the drivers for outsourcing are strong.
All our markets have maintained a good flow of
outsourcing opportunities across both public and
private sectors.
In the private sector:
Capita is well established in the private sector which accounts for 52% of our turnover.
1. Life and pensions
Our scale, focus on customer service and investment in specialist technology makes us a compelling choice.
Life and pensions
2. Insurance
Capita works with its clients as a strategic partner, helping them to rise to the insurance industry’s challenging business environment.
Insurance
3. Financial services
Capita is a strong, stable service partner for clients facing fierce competition and growing regulation.
Financial services
4. Other corporates
Capita helps increase our clients’ competitiveness by enhancing their customer services and reducing costs.
Other corporates
In the public sector:
Today, the public sector accounts for 48% of our turnover.
5. Local government
Transformation of public services remains a top priority for our partnerships in local government.
Local government
6. Central government
Capita helps Government departments to improve the quality, efficiency and capacity of public services.
Central government
7. Education
Capita combines first class professional support services and innovative products with education expertise to help clients deliver against challenging agendas.
Education
8. Transport
Through its property consultancy business, Capita Symonds, Capita is one of the UK’s leading transport and infrastructure consultancies.
Transport
9. Health
Capita is helping to deliver the transformation of the health sector demanded by Government and public alike.
Health
Continued growth
With strong demand for outsourcing continuing across
our markets,we will remain focused on selecting
opportunities where we believe we can clearly meet
clients' expectations, maintain controlled growth and
achieve a reasonable return for the Group.
In 2008, our strongest markets remained life
and pensions and local government. Both markets
continue to offer a steady flow of opportunities.
Central government, a market which has been less
active in recent times, is beginning to offer some
interesting opportunities, including 2 of our major
contract wins in 2008: the Gas Safe RegisterTM scheme
for the Health and Safety Executive and NHS Choices,
the NHS' online presence. Looking ahead, we believe
greater demands on public spending will bring a
greater requirement to deliver high quality public
services at reduced cost – and we are well placed to
help achieve this.
While constantly expanding our offering in our
chosen 9 markets, we also proactively identify and
target new market segments where we feel we can
add value. We are interested in developing further
opportunities in the health market following our
recent success in winning the contract to deliver
NHS Choices. This contract gives us wide insight
into health issues and policy, and engagement at a
central government and health trust level. Defence
is an area of government where we have previously
been fairly inactive but now see opportunities to
provide back office administration services.
In the current economic climate, an increasing number
of private sector organisations are expected to review
their business models more rigorously and identify
areas where outsourcing could reduce financial risk,
lower costs and offer protection against economic
volatility. With our scale, expertise and financial
stability, we believe we are well placed to help these
potential clients create more flexible, lower cost
operating models while improving service quality.