Capita wins back outsource contract from IBM

It’s been a backwards and forwards arrangement. Capita first operated the congestion charging system when TfL first launched it in February 2003, before IBM took over the deal in 2009.

Four years later, TfL has now decided that Capita will resume charge from November 2015 onwards.

But the deal isn’t likely to be quite as sweet this time around, reckons Techmarketview’s Tola Sargeant. "It’s unlikely, however, be as lucrative a contract for Capita as it was ten years ago,” she argues.

“Although the nature of the deal has evolved, it’s interesting to note that Capita’s first contract with TfL was worth around £60 million p.a. to the company, contributing about 3% (£10m) of profits in 2009."

"Today’s deal works out at about half that in revenue terms thanks in part to automation and the continued pressure to drive down costs."

Nonetheless it’s a good win for Capita. “The experience and expertise we have across the Group, including our knowledge of managing complex IT systems and seamless multi-channel customer services, together with implementing and managing the congestion charging scheme when it was first launched, means that we are well equipped to deliver these schemes,” said Andy Parker, Capita deputy chief executive.

“Congestion Charging, Low Emission Zones and traffic enforcement play an important role in reducing congestion, meeting emissions targets and increasing investment in London’s transport and we are looking forward to working alongside TfL once again to improve the experience for road users.”