Capita selected by O2 to form 10 year partnership

Capita plc - Capita selected by O2 to form 10 year partnership

PR Newswire

London, May 20

21 May 2013

Capita plc today announces that it has been selected by leading communicationscompany Telefónica UK (O2) as their preferred bidder to form a 10 yearstrategic partnership for customer management services. The deal, which buildson Capita's existing long-term partnership with O2, will see Capita run andmanage O2's customer service centres and support O2 as it enhances and expandsits digital service offering to customers. Final negotiations are now takingplace, with the 10 year contract expected to be worth approximately £1.2billion and due to commence on 1 July 2013.

Paul Pindar, Chief Executive Officer, Capita, said: "O2 is a brand renowned forits innovative and bold approach to delivering services and, as a result, has aloyal customer base. Capita will design an enhanced service around customers'evolving needs, introduce new capabilities quickly and ensure that customers'experiences continue to be excellent. We will build on our existing long termrelationship with O2 through `best of breed' technology platforms which supportservice flexibility, quality and efficiency. Close partnership working with O2will enable us to adapt our customer management services to seamlessly matchdevelopments in O2's service offering.

"Today's announcement demonstrates the added value we can deliver to ourclients through deploying our industry leading customer management servicescapabilities and extensive operational delivery infrastructure and drawing onour experience of the evolving digital landscape."

Capita delivers a range of customer management services for private and publicsector clients including multi-channel customer support, sales and customeracquisition, debt collection, customer retention and revenue growth andtechnical support, all underpinned by data-driven analytics andcustomer-centric service design. It provides services to a wide range oforganisations across a range of sectors, including British Gas, Debenhams,Department for Work and Pensions, Severn Trent Water and National Trust.

Update on revenue growth for 2013 since Capita's recent IMS

Following this contract announcement today, Capita has secured over £2.0bn ofmajor new and extended contracts to date in 2013. Accordingly, it now expectsto achieve greater than anticipated organic growth for the full year 2013 andcurrently has visibility of at least 8% organic revenue growth. This also meansthat Capita is now undertaking a record volume of new contract implementations(including its 2 largest ever contracts with Staffordshire County Council andO2) with their associated start up costs in 2013.

For further information: Capita plc

Tel: 020 7799 1525

Paul Pindar, Chief Executive Officer

Shona Nichols, Corporate Communications Director

Media enquiries only:Capita press office

Caroline Mooney

Tel: 020 7654 2152 or 020 7654 2399 (out of hours)

Email: [email protected]

Notes to editors

Capita plc is the UK's leading provider of BPO and integrated professionalsupport service solutions. With 52,500 people at more than 350 sites, including70 business centres across the UK, Europe, India and South Africa, the Groupuses its expertise, infrastructure and scale benefits to transform its clients'services, driving down costs and adding value. Capita is quoted on the LondonStock Exchange (CPI.L), and is a constituent of the FTSE 100 with 2012 revenueof £3.3 billion and profit before tax of £426 million. Further information onCapita plc can be found at: www.capita.co.uk