Hot on the heels of Capita losing out to Agilisys in the Westminster City Council deal, Capita are now to lose work with Birmingham City Council. The deal was operated under a joint-venture called Service First which was run by Capita and the council. However, Birmingham City Council believe that by moving the 500 agent operation back in-house, it will help towards the council saving '150 Million.
The fact that cost-saving was considered the primary issue is unusual given that it is the same reason normally given for outsourcing work to third party companies. Between 2006 & 2012, the deal cost in the region of '1 Billion and was believed to offer poor value to the tax payers of Birmingham.