Capita gets HR group into shape

Capita, the consultancy and support services firm, has began 1998 by restructuring its service offerings so that all its human resource acquisitions come under the one HR group.

Capita managing director Paul Pinda said that City brokers have forecast earnings of #140m for its consultancy, IT and HR services for the end of 1997; its property services business is expected to bring in #35m, giving the firm overall growth of 30 per cent.

The firm’s business services are now divided into four groups: technical services that include consultancy and IT services; HR; and software and support services.

“The prime reason for restructuring was to make human resources a business in its own right; we also aligned consultancy and IT and we moved to a common identity to strengthen our branding in the market place,” said Pinda.

“All aspects of HR functions have taken off, and we are seeing more opportunities for outsourcing in HR.”

Pinda quoted the Oxford University Forecasting Unit, which predicts the outsourcing market to grow to around #80bn by the Year 2000.

Three years ago the company had virtually no human resources consultancy – now the business is worth in excess of #50m.

Capita has brought together payroll unit Capita Datapay, acquired in August 1997 for #9.3m, pensions unit Capita Heartshead, bought in February 1997 for #4.35m and Northern, built up from a series of contracts including a teachers’ pensions division, won in October 1996; and Capita Ras the recruitment and training arm.

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