Capita has been confirmed as preferred bidder to take over a range of business processes at Sheffield City Council from January 2009, beating Fujitsu to the deal.
The outsourcer is in line to run IT, payroll, revenues and benefits, finance and HR transactional servicesin a £200 million deal.
The company will replace Liberata and Affiniti who are the Council’s current suppliers for these services, except for HR, which is currently provided in-house.
The deal for an initial period of seven years, with the option to extend it by three further two-year periods.
The council is promising “significant investment in information and communications technology” to deliver mobile services to staff and enable more online services to citizens. Sheffield is also promising significant environmental benefits from the outsourcing contract.
Capita and the council do not expect any job losses to arie from the contract, with staff who work for Liberata and their sub contractor Northgate transferring to Capita and Sheffield City Council staff working in HR and IT also transferring to Capita while retaining the same terms and conditions of employment.
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