Capita bags BBC's ten year HR outsourcing contract

MUMBAI: UK pubcaster the BBC has announced that it has selected BPO firm Capita as its preferred supplier for a ten-year HR services contract.

The deal means that Capita will work closely with BBC People, the department responsible for the BBC's people strategy, to deliver many of the BBC's HR services across the corporation for the next ten years. The contract with Capita is due to become operational from April 2006, subject to contract signature.

The service centre for the new arrangement will be located in Belfast, currently one of the Capita centres for BBC activity. Capita is an existing strategic partner for the BBC and already provides a range of services including licence fee collection. The contract is for a period of ten years with the option to break at year five.

BBC People director Stephen Dando says, "This deal marries both our expertise in human resources with the resource and expertise of a leading player in business process outsourcing.

"The value created from this deal is a significant step for us in ensuring the BBC is fit for the future and continues to invest in creating innovative programmes and services for our audiences. But this deal is about much more than that, it is about creating the right platform for BBC People to enhance its strategic and valued contribution to the BBC. We look forward to strengthening our relationship with Capita to deliver our HR vision over the next decade," adds Dando.

Capita Group executive chairman Rod Aldridge said, "Capita is delighted to have been chosen to support the BBC in delivering their HR services to meet the current and future needs of the corporation. Capita's service transformation skills and breadth of HR services, combined with the expertise of BBC People, will enable us to deliver enhanced services alongside significant cost efficiencies. We look forward immensely to working with BBC People and extending our already strong relationship with the BBC."

The procurement process follows an internal BBC People review which proposed that a number of services should be outsourced. The review team identified this as one of the measures to help put extra resources into programmes as part of the BBC's plans to transform the organisation into a simpler and more creative digital broadcaster.

BBC People was formed in 2001, bringing together for the first time the vast majority of the BBC's functional HR specialists. The division supports the whole employment process. It supports around 25,500 BBC staff, and casually engaged individuals based within multiple UK locations and internationally, and deals with the significant 'churn' associated with new hires/leavers. 260 BBC employees will be transferring to Capita and around 100 jobs will be created in Belfast.

The BBC expects to save in excess of £50 million over the life of the contract. Under the new contract Capita will deliver a full range of HR services to the BBC including recruitment - this means a full recruitment process including attracting and selecting candidates, offers, recruitment marketing including events and work experience and contract administration. Then there is the area of remuneration including pay administration and transaction, benefits administration (excluding pensions), pay and benefits enquiry management. Development is another key part of the HR services specifically, 360 degree assessment and feedback, outplacement, training and development for broadcast engineering skills, technical services.