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Capita - Managed Service Program

Vendor Analysis

by Elizabeth Rennie

published on Oct 21, 2015

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Report Overview:

Capita launched its MSP business in 1998 in IT staffing. In 1996, it had acquired Recruitment and Assessment Services (RAS), an independent recruitment agency established to provide recruitment services to government departments and agencies. 

Who is this Report for:

NelsonHall’s Managed Service Program vendor assessment for Capita is a comprehensive assessment of Capita’s managed service program (MSP) offering and capabilities, designed for:

  • Sourcing managers investigating sourcing developments within MSP
  • HR decision makers exploring the benefits and inhibitors of MSP as evidenced from the clients and vendor capability
  • Vendor marketing, sales and business managers developing strategies to identify developments and target opportunities within managed service programs
  • Financial analysts and investors specializing in, or covering the HR outsourcing industry and suppliers.

Scope of this Report:

The report provides a comprehensive and objective analysis of Capita’s managed service program offering, capabilities, and market and financial strength, including:

  • Identification of the company’s strategy, emphasis, and new developments
  • Analysis of the company’s strengths, weaknesses, and outlook
  • Revenue estimates
  • Analysis of the profile of the company’s customer base including the company’s targeting strategy and examples of current contracts
  • Analysis of the company’s offerings and key service components
  • Analysis of the company’s delivery organization including the location, size and scale of delivery locations and their activities.

Key Findings & Highlights:

By volume, Capita’s MSP business is mainly public sector; however it also has clients across the energy, transport and logistics (including aviation services), and defense industries. It has ~160 employees supporting MSP services across its seven MSP contracts. It should be noted, however, that several of these contracts are MSP frameworks, which although procured by a single entity (where the master contract is between Capita and that single entity), the service is provided to multiple autonomous clients (where each client contracts under a separate call-off contract). For example, within Capita’s CL1 government contract framework there are currently ~100 public sector organizations accessing the framework through specific contracts.

In 2014, it managed a total contingent workforce spend of £650m across ~12.5k contractor resources (or ~6.5k daily average). Of these, the majority of contingent workers were direct hires (~60%) through a master vendor model, and the remainder are agency supplied staff sourced in a vendor neutral model.

Capita’s most significant MSP deal is through its agreement with Crown Commercial services, which provides a vendor neutral service to ~100 U.K. central government and public sector organizations across health, policing, regulation and other public services.

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