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Highlights
Capita reallocates efficiency gains into AI innovation across core operations
Broad AI deployment with multiple new products and internal use cases identified
Decline in contact centre revenue offset by growth in public and regulated segments
Capita plc (LON:CPI), a key outsourcing and professional services firm listed on the FTSE 250, is intensifying its focus on artificial intelligence (AI) by redirecting cost savings from its transformation programme into new digital technologies. The company, known for its extensive contracts across the public and private sectors, has accelerated its AI adoption in an effort to restructure operations and enhance long-term resilience.
The group has implemented wide-ranging cost reductions as part of a broader strategy to streamline its operations. Part of these savings is being channelled into building new AI-based capabilities, which management views as a critical step in “future-proofing” the business. This move reflects a significant digital shift, aimed at embedding AI across multiple service lines.
Capita has launched several AI-powered solutions tailored to both internal operations and external clients. Among them is Agentforce, developed in collaboration, which is designed to support large-scale recruitment. Internally, the group has identified hundreds of AI use cases that enhance operational productivity, while also unveiling multiple products already in market with others undergoing advanced testing.
The company’s leadership confirmed that client engagement with AI-powered tools has risen notably. Capita is now prioritising technology-driven solutions to meet evolving customer demands and enhance service delivery efficiency. This renewed technological emphasis includes both generative AI and automation applications across recruitment and other support functions.
While the company pushes forward with its AI agenda, it is also navigating mixed performance across its operational segments. The contact centre outsourcing division has experienced a notable contraction, impacted by client attrition and reduced demand in the telecommunications sector. However, this downturn has been somewhat mitigated by expansion in other areas. Public sector services, where Capita remains a key provider, showed upward movement, while regulated services also delivered positive momentum.
As part of its ongoing restructuring, Capita has placed a significant focus on organisational efficiency. The business has committed to becoming leaner, leveraging automation, and refining internal capabilities. This includes reinvestment into its technology infrastructure and further development of in-house AI skills. Leadership reiterated the firm’s intent to bolster its core technology base while maintaining stringent cost management principles.
Capita is also building new partnerships to strengthen its position in the digital services landscape. These collaborations aim to expand its product suite and support clients in achieving their digital transformation goals. The company remains closely aligned with various government and institutional clients, including ongoing responsibilities in sectors such as broadcasting and military recruitment.
With this AI-driven strategy, Capita aims to reinforce its standing on the FTSE 250, following a period of operational reset. The group’s management has indicated that improving operating margins remains a top priority as it continues its transformation amid shifting market dynamics.
