Confidence in Capita has taken a real hit following its second profits warning in as many months (see Capita downgrades again, plans Asset Services sale), with its shares now off c60% year to date.
Capita’s CE Andy Parker talked of taking ‘decisive action’, to reduce Capita’s cost base and its improve its operating efficiency.
The UK SITS market leader is now cutting c2,000 jobs, or c3% of its workforce, seeking to dispose of the majority of its highly profitable Asset Services business, and turning to offshoring and automation, to turn things around. Capita said the changes will ‘strengthen management, improve visibility, enhance reporting and sales effectiveness. Leaves Capita more focused and leaner.’
However, this isn't going to be an overnight fix. There's a huge amount of work to be done to restore lost confidence.
Subscribers to TechMarketView's subscription services can read our full analysis in UKHotViewsExtra here.
Posted by John O'Brien at '08:17'
Share this article
T 01252 781545
Website Terms & Conditions
The TechMarketView name and logo are registered trademarks of TechMarketView LLP
® | © Copyright TechMarketView 2007- 2017
You can change your cookie settings at any time but parts of this (and other sites) may not work as a result.