Capita loses Home Office contract to Indian supplier

The Home Office has awarded a contract to run the Government’s new Disclosure and Barring Service (DBS) to a private company from India with some of its services being provided by workers on the sub-continent.

In December the Criminal Records Bureau (CRB) and the Independent Safeguarding Authority (ISA) will merge to create the new service. It is set to be delivered partly by Tata Consultancy Service (TCS), a multi-national information technology, business solutions and outsourcing company, headquartered in Mumbai.

The contract is currently being delivered by Capita, with its offices based in Liverpool, but the Home Office claimed the amount of off-shore activity under TCS will be “significantly” less than being carried out under current arrangements.

However, Capita said that although staff in India do provide some data processing support to its Liverpool-based operations – as they do for a variety of Capita businesses – from a user point of view the CRB service is delivered “wholly” from Liverpool. In addition, the IT system development and build all takes place in the UK, while all inbound and outbound communications via voice, post and web are too delivered in the UK.

A spokesperson said: “The Home Office has awarded the contract to support the DBS to Tata Consultancy Services. The new contract will support the delivery of services currently provided by the CRB and ISA.

“This will include making these services available online and supporting new portable checks for those working with children and vulnerable groups.”

The Home Office added that the DBS will continue to process applications for criminal record checks so employers can make informed recruitment decisions and continue to protect vulnerable groups from harm. As part of the change, a rebranding exercise will take place where “minimal” changes to the application form and certificate will be noticed.

Capita had been delivering the disclosure service for the CRB for more than ten years and its current contract will be extended beyond March 2013 until the handover takes place. The contract is worth around £400 million and Capita had been widely expected to secure a similar contract to support the replacement DBS.

A Capita spokesperson said: “Capita plc is aware that the Home Office is pursuing discussions with another supplier with the intention of awarding them a contract to support the new DBS operations.

While the date of the full handover of services to the new supplier has yet to be finalised, the CRB has advised Capita of its intention to extend the current CRB contract with Capita beyond the current expiry date of March 31, 2013, and the terms of this extension agreement are now being finalised.

“Capita is disappointed not to have been selected by the Home Office to support DBS. We believe we have built a strong partnership with the CRB successfully delivering the disclosure service for over ten years. We will now, of course, work with the CRB, and its new partner, to enable the smooth transfer of the service.”

The Public and Commercial Services (PCS) Union, which represents Capita’s CRB staff, said Capita previously off-shored some work – called the KFI (key form from image) process – to Mumbai about eight years ago and that up to that point the work was done by about 25 staff in Liverpool.

However, it added that the Home Office had indicated in July its intention to award the DBS contract to TCS and said it will now seek urgent reassurances.

In a statement, the union said: “PCS will be writing to Tata shortly demanding an urgent meeting. At the meeting our union will be seeking written guarantees on jobs, their location (with a guarantee that they will remain in Liverpool), pay and terms and conditions.

“PCS will also be seeking guarantees over early consultation and engagement to discuss our members Transfer of Undertakings (Protection of Employment) transfer into TCS. We want to receive assurances that our members’ jobs are secure over