Capita using cost savings to invest in AI push
The group said it had so far stripped out £185 million of costs as part of its plans to save £250 million a year by the end of 2025 and will put some of the savings into new technology as it rolls out new AI offerings to clients.
Capita has launched several new AI products, including Salesforce's Agentforce for large-scale recruitment, while it has found more than 200 use cases for AI across the business, and launched five new products with five more in the detailed testing stage.
The group is putting faith in the new technology to help drive savings within the business as well as offering customers new services.
Adolfo Hernandez, chief executive of Capita, said customer interest in so-called AI agent technology had 'grown exponentially'.
'We are reinvesting a portion of our efficiency savings into new technology solutions, particularly those underpinned by AI and we are focused on bringing these technology solutions to more clients,' he said.
It comes as the group is looking to improve its profitability, while sales have also come under pressure, down 4.5% in the five months to May 31.
Capita said: 'We are making good operational progress to future-proof the business in line with our expectations.'
The group added: 'Our first priority is to improve the group's operating margin, while maintaining cost consciousness.
'We are building a leaner organisation, reinvesting in the technology core of the business and deepening our own AI skills, developing products and forging new partnerships.'
Its latest trading update showed sales in its contact centre outsourcing business slumped 21% in the first five months, hit by contract losses and lower demand in the telecoms sector.
This was partially offset by 2.3% growth in sales across its public service arm and a 6.4% rise for its regulated services division.
Capita hiked its cost reduction target in December last year to £250 million by the end of 2025, up from £160 million, revealing it was aiming to drive savings from the use of AI and staff turnover.
Capita – a major contractor for the Government and local authorities which also manages the licence fee for the BBC and runs recruitment for the British Army – has been accelerating the use of AI and generative AI to speed up certain tasks, such as recruitment.
Last year, it announced plans to cut around 900 jobs as part of the cost-reducing plan, but is also looking to deliver some of the extra savings through staff turnover, which was at a rate of 21.7% at the end of last year.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
BBC News
35 minutes ago
- BBC News
'Company's collapse in Long Eaton left my dad without care'
A woman says she had hours to find alternatives for her 79-year-old dad after the company providing care for him had closed for Homecare, which provides care visits for the elderly and vulnerable and is based in Long Eaton, Derbyshire, has blamed rising costs, the increase in employers' National Insurance contributions and a recruitment crisis in social those affected by the sudden closure is Hayley Woollford's dad Russell, a retired mechanic who served in the Army."It's been a bit scary really because I've been wondering who is going to be looking after me," the 79-year-old told the BBC. Mr Woollford lives with lymphoedema - a condition which affects his mobility. "It just shows how much social services are under pressure - all those people who were looking after me, I don't know what's going to happen to them," he said."It's all happened really quickly, I can't really comprehend it all." His daughter, Hayley, said the short notice of the firm's collapse added to the family's panic in trying to sort alternative care."I've had a really stressful two days trying to organise something for my dad and it's taken a lot out of me," she said."It's been extremely hard, less than 48 hours, there was no need for it, that was the most difficult part of it."I couldn't believe it when my dad rang me. I was at work myself and threw my whole day out of sequence."One employee who lost her job told the BBC some of the company's clients were receiving four calls a day, sometimes from two carers. The woman, who did not want to be named, said some of those she had visited were receiving end-of-life care. 'Recruitment crisis' In a notice of termination email sent to staff - and seen by the BBC - Hygea Homecare blamed a number of factors for its closure. "We've faced mounting pressures that small businesses struggle to weather," it said."Rising costs, the increase in employers' National Insurance contributions, and a challenging economic climate have pushed us beyond what we can sustain. "The ongoing social care recruitment crisis has created additional challenges, with increased competition for skilled staff and rising wage expectations that we simply cannot match whilst maintaining a viable business. "We explored every option we could think of – cutting costs, seeking new opportunities, looking for ways to keep going. Unfortunately, it wasn't enough."A company spokesman told the BBC Hygea Homecare had continued to provide care visits until 22:00 BST on 1 July and all of its clients had been notified of the company's closure by phone or email. They added all relevant bodies had also been made Joss Barnes, cabinet member for adult care at Derbyshire County Council, said: "Since becoming aware of the issue, our teams have helped people who were receiving support from the company to find alternative care to meet their needs."
BBC News
35 minutes ago
- BBC News
Special Banks's beer to mark 150 years in Wolverhampton
A mystery commemorative beer has been produced to mark the 150th and final year of Banks's beer production in comes after Carlsberg Marston's Brewing Company announced last October that it would close its Wolverhampton factory, as part of a wider one-off special brew will only be sold at the city's Camra beer and cider festival this summer and event organiser Charlotte Coxon said the brewery was keeping details about it well under brewery was a well-known local landmark, having been producing beer in Wolverhampton since 1875 and Ms Coxon said it was sad this would be the last special edition beer it supplies. On top of closing the factory, the firm also said it would stop producing Banks's Mild and Banks's Sunbeam in Coxon said she has been told about the mystery beer was that it would mark the 150th year of Banks's production and it would not be a dark has been holding a summer beer festival in the city since 1975 and the Banks's factory has been supplying a one-off beer to the event for the last eight Coxon said the local Camra branch had had a "good relationship" with the three-day festival begins on 24 July at Wolverhampton Arts Centre and Ms Coxon - who, along with everyone else, will not get a chance to taste the mystery beer until then - said she expected the brew to be very popular. Follow BBC Wolverhampton & Black Country on BBC Sounds, Facebook, X and Instagram.
BBC News
35 minutes ago
- BBC News
Plans for Wakefield shopping centre revamp approved
Plans for a major revamp of one of Wakefield's main shopping centres have been have backed a scheme proposing to upgrade 22 "out-of-date" retail units at The of the shops earmarked for improvements are on All Saints Walk, which connects the east and west part of the shopping centre. The proposal includes installing new cladding, repainting concrete panels and fitting black windows to give the stores "a contemporary aesthetic." A planning statement submitted on behalf of centre owner Zahid Iqbal said: "The proposal aims to renovate existing out-of-date and non-matching store fronts."A lot of these stores are vacant and the proposal aims to bring more business into the eastern part of The Ridings shopping centre."The design is aimed at providing the client and area with an exceptionally high quality and aesthetically pleasing commercial revamp to improve local business as most of the stores are not owned by major brands."The proposed development aims to refresh the existing facades and store fronts which currently look mismatched and old. Planning officers said the scheme would create "a more harmonious streetscape" while the proposed materials and finishes were "of high quality and appropriate to the host building and wider street scene". The Labour-run Wakefield Council backed out of buying the shopping centre in December 2022 after it had been considering taking control as part of plans to regenerate city centre senior councillors had said financial pressures meant it was "not the time or the place" to buy the centre and cabinet members instead agreed to try to find a third-party buyer and work in partnership to redevelop The was bought by Yorkshire businessman Zahid Iqbal in March 2023, according to the Local Democracy Reporting to highlights from West Yorkshire on BBC Sounds, catch up with the latest episode of Look North
