Capita given early Order of the Boot from £500m Post Office deal

Capita has been booted off a £500m deal with Fujitsu to supply a broadband network to the Post Office, following reports of underperformance by the outsourcer.

In 2012 the Post Office signed up Fujitsu for the five year deal to provide its "next-generation network (NGN) broadband experience combined with enhanced customer care and billing solutions."

Under the deal, said to be worth up to £500m, Fujitsu also partnered with TalkTalk to deliver its network and with MDS for advanced consumer billing.

But insiders say it missed a number of service level agreements and has consequently had its contract terminated early.

The Register understands HGS has been awarded the deal instead, with the call centre to be relocated from Capita's base in Leeds.

HGS is expected to run its customer service and technical support from its Scotland office, with the rest of the services be provided out of its Preston office.

As such, Capita is trying to relocate staff into other Capita contracts – but staff who won't relocate within the business can either TUPE to HGS or face redundancy.

Fujitsu is expected to complete the migration by the end of next month.

A spokeswoman from Capita said: “Fujitsu and Capita have come to an agreement to terminate Fujitsu's current contact centre services contract with Capita. We are consulting with affected employees about potential redeployment opportunities across the business."

She added: "As part of our joint decision to terminate the contract, we are committed to delivering a high level of service to the client and will work together ensure a smooth transition.” ®