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ICT, Health & Business Services

Comprises our ICT business, health business, our Service Birmingham partnership, business travel administration, conferences and consulting businesses.

  2009
£m
2008
£m
Turnover 507.4 382.2
Underlying operating profit 58.4 37.1
Underlying operating margin 11.5% 9.7%
Capex 9.7 10.1

The businesses within this division have traded well both through the strengthening of existing client relationships as well as forming new ones, such as those in the health market. Our ICT business, which supports external clients and the Group’s contracts and operations, has also expanded through a combination of contract wins and acquisitions. Our prospects for growth remain positive in the various markets served by this division.

2009 performance

Capita Health Services: Our health business has continued to grow and perform well, securing a number of significant contracts and acquisitions. Important milestones have included:

  • successful transfer and delivery of NHS Choices, achieving average growth in traffic volumes to the website of 7 million per month.See NHS Choices case study.
  • successful launch of another new Department of Health service called The Information Standard
  • in December, we signed a contract with NHS BSA to administer the processing and payment of circa 40 million dental claims and provide a managed IT service. The service will be delivered by our health and IT services businesses.

Capita IT Services: we have focused on extending our capabilities through selective acquisitions and growing organically:

  • while continuing to support Capita businesses and their clients, our IT Services business has had increasing success in winning IT outsourcing (ITO) contracts from external clients across both the private and public sectors – including a contract to provide a tailored ICT service to NHS Hounslow and participating in the BSF programme, including a contract in Rochdale
  • Computerland has been fully integrated into our IT Services business and Carillion IT Services is currently being integrated, bringing valuable additional capabilities and accreditations. The enlarged business now has over 2,000 technical resources.

Service Birmingham: We continue to drive efficiency and deliver core ICT service and solutions to support the Council’s ambitious business transformation programme. New developments include:

  • delivery of a more robust and reliable external Council website on a new, scalable and resilient infrastructure, named by Sitemorse as the fastest improving local authority website in the UK
  • implementation of a new performance development review and HR payroll systems to help the Council make best use of its people resources, improve performance and become an employer of choice.

Capita Business Travel & Conferences: Alongside operational consolidation, the business traded well in challenging market conditions. We secured a significant number of new clients and a place on the OGC framework for public sector travel procurement. Our conferences business delivered over 200 conferences in highly diversified fields. We have implemented sophisticated Customer Management systems in both our travel and conferences businesses, enabling us to increase marketing efficiency and respond to our clients more effectively.

Capita Consulting: focusing on local and central government, health and the private sector, the business has progressed well winning new business with clients including Stockport MBC, Buckingham CC, Sellafield and Royal Pharmaceutical Society.

2010 priorities

  • Continue to implement key components of Birmingham CC’s Customer First programme, enabling simpler access to services for citizens. Focus on driving through business benefits across all Service Birmingham programmes to address the increased funding pressures faced by local authorities
  • Continue to grow IT Services through securing further external clients and providing broader services to other Capita business units and their clients
  • Maintain the growth of our presence in the health sector by further integrating sales across our health businesses and developing additional outsourcing opportunities
  • Make further enhancements to our travel and conference services in order to continue to deliver high standards of service to our clients
  • Enhance capabilities and increase market reach through selective acquisitions.