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By | Kat Hall 25th March 2015 11:18

Capita shuns its own £2.5bn framework and touts G-Cloud IT

Controversial outsourcer admits its own product is crap

Not content with its prime spot on a controversial deal to manage £2.5bn in public sector contractors, Capita is also touting its IT services via the G-Cloud, admitting its mega framework is not "always best for niche skills."

In an unsolicted email sent to one government department, Capita appeared to admit the controversial Contingent Labour One (CLOne) framework is not always up to scratch for IT.

"Where in instances this framework has been very successful, this is a volume framework and isn't always best for niche skills in the IT market," it said.

The author went on to offer IT recruitment via the G-Cloud, instead of Capita's own CLOne system, promising a "more specialist and precise service for IT recruitment."

Under CLOne, Capita is responsible for the provision of "interim managers and specialist contractors" across a range of services including IT. The terms of the deal allow it a 20 per cent cut of the value of all the contracts, and have proved unpopular with some SMEs.

The Independent has reported the company faces an investigation into its handling of the contract following complaints by small businesses.

Yet insiders say the contract is also disliked by government departments. Many instead use the G-Cloud, with 80 per cent of the total £516m G-Cloud spend having so far been channelled through lot 4 "specialist cloud services".

It is unclear whether blanket recruitment services should sit on the G-Cloud – with Capita's IT recruitment page making no specific reference to cloud services.

However, a huge grey area exists as to how many of the 12,352 "specialist cloud services" providers technically offer cloud transitional services.

Capita denied the email amounted to incorrect targeting of services.

A spokeswoman said: "Capita IT Professional Services, which is an official G Cloud 6 supplier, has approached government departments only about opportunities advertised in the relevant catalogue and only via the channels permitted by it.

"Under Lot 4 the catalogue lists recruitment/resourcing contracts as well as a range of other opportunities; two of the biggest suppliers of G Cloud services in 2014 were recruitment companies."

Last month the Cabinet Office issued a new tender for the next £2bn Contingent Labour Two contract.

Capita has had a run of huge public sector contract wins of late, most recently being one of three suppliers awarded a £5bn NHS deal. ®

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