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Building scale and capacity and optimising our infrastructure

Aim: to have the right resources in place, both in terms of infrastructure and people, to satisfy clients that we have the operational scale and capability to deliver our promises.

Progress: We have built up an extensive operational infrastructure and a depth of capabilities which enable us to fully support our clients, provide flexible operating models and share economies of scale.

We continuously assess the needs of each business unit to ensure that we have the necessary people, infrastructure and resources for current and future development. Each month we review comprehensive operational management information through the MOB review process. This enables us to manage our resources in a way that meets the needs of our clients and delivers our key financial targets.

Wherever possible, we will migrate and integrate systems, share resources and rationalise premises to optimise our infrastructure while maintaining and enhancing services. In 2009, we have taken significant steps forward in this ongoing process, particularly across our Life & Pensions business.

Sharing scale benefits

Our substantial scale and broad capability enables us to put forward compelling propositions to clients and underpin the winning of major integrated service transformation contracts.

The delivery of progressively larger contracts, with common processes and substantial numbers of transferring employees, fuels the growth of our operations and resources. As we increase scale, we are able to deliver more services and contracts through shared ICT platforms and operating structures, providing greater benefits to clients. They benefit not only from cost efficiencies but also from greater access to specialist skills and flexible service delivery models.

Our business centres, where we are able to run a broad range of shared services, form a central part of our service delivery infrastructure. They are also excellent reference sites, allowing potential clients to see operations first hand and to speak with employees who have transferred to Capita from client organisations. At the end of 2009, we had 62 business centres onshore in the UK, nearshore in Ireland, the Channel Islands and Europe, and offshore in India.

Business centre network

  • Onshore: UK

  • Core client marketplace
  • 52 business centres
  • Back office administration
  • Customer services
  • Life and pensions
  • IT and software
  • Resourcing and training
  • Share registration
  • Property consultancy
  • Electronic document processing
  • Claims and policy administration
  • HR administration
  • Nearshore: Ireland,Channel Islands, Europe

  • Additional tax jurisdictions to support clients’ products
  • 5 business centres
  • Customer services
  • Life and pensions administration
  • Financial services
  • Corporate registrars
  • Loan administration
  • Offshore: India

  • Quality, cost effective offshore service delivery
  • 5 business centres
  • Data validation and entry
  • Claims and policy administration
  • Fund management administration
  • Accounting and finance processing
  • Payroll processing and HR Services
  • Property consultancy

Blended service delivery

Our infrastructure allows us to offer clients an onshore/offshore delivery model structured to meet their individual needs. By combining onshore and offshore resources we can deliver maximum service flexibility, quality and cost effectiveness. Our comprehensive security and quality assurance systems ensure consistent service quality across the entire infrastructure.

Offshore operations

We established our offshore operations in India in 2004 and they play an increasingly important role in our business and long term growth strategy. Capita India is fully integrated into the Group and operates like any other Capita business with the same values, technical infrastructure and operating model. It continues to develop strongly both in scale and scope of services and is a compelling proposition when offered as part of many of our bids. It also plays an increasing role in supporting Group businesses and Group support functions.

We now have 3 sites in Mumbai, 1 site in Pune and a new operation in Bangalore. These sites are specialist centres, delivering services to multiple clients or providing multiple services to a single client.

The sites share a combined management team to ensure they all benefit from their collective skills. We proactively recruit from the highly skilled graduate workforce that is available in these locations. Their skills, knowledge and excellent work ethic help us meet our objectives of delivering a first class service to our clients. Capita is widely regarded in India as a first class employer who will encourage and help employees grow and develop their careers. We therefore benefit from being able to attract and retain a highly skilled and professional workforce.

At the end of 2009, our Indian operations represented approximately 10% of our overall headcount and delivered significant growth in profits.

Adding value and protecting our clients

Alongside helping our clients to function more efficiently and cost effectively, we are continuously looking to enhance operations to ensure that their customers receive appropriate and flexible services. We do this through improving business processes, increasing customer choice and accessibility and looking for opportunities to apply innovation. The wider benefits of our efforts for our clients extend to the public and local communities where we operate.

By responsibly managing our clients’ services we ensure that we adhere to any legal requirements regarding data protection and information security. We have robust policies and procedures governing data security, which include policies, user guidance, online training and incident procedures. It is mandatory for all Capita employees to complete information security, data protection and fraud awareness training every year. Our employee vetting policy applies to all our employees, including contractors and temporary employees. Where our clients have any particular risks in their business we work with them to address their requirements.