Marsh & Capita Announce Outsourcing Partnership

by Stewart Douglas

Story link: Marsh & Capita Announce Outsourcing Partnership

Insurance broker Marsh has today announced that it has selected Capita to provide its outsourced back office support systems for the next decade, following a widespread procurement programme designed to find a suitable facilitator for the £200 million contract.

As part of the deal, Marsh will provide Capita with access to 650 staff in order to manage the back-end service requirements, with the contract set to run for ten years as of finalisation of the exact terms.

Martin South at Marsh said that Capita was a natural choice, based on its strong history of delivery within the financial and insurance markets, and proven competence in back-end support across service industries.

“We have selected Capita as our preferred partner due to its excellent track record of service transformation and delivery in the insurance and wider financial services markets.”

Meanwhile, Paul Pindar of Capita said that the group were positive about the contract and the prospect of working with Marsh with a view to providing long term value on both sides of the table.

“Our service re-engineering expertise combined with our extensive London insurance market knowledge will enable us to enhance the competitiveness of Marsh in the UK and global insurance markets.”

Whilst the contract has yet to be finalised and is pending due dilligence and latter contract negotiations. It is thought that the deal, worth £200 million to Capita, will be finalised by the end of April this year, with a view to immediate commencement.

It remains to be seen whether negotiations will come to fruition between the two sides, and whether the Capita arrangement will go on to provide value compared to in-house operations.