We now employ over 27,800 people across the UK, Ireland, Channel Islands and India. Robust HR processes and disciplines ensure that we have the right skills to meet customer demand. We aim to attract and retain the right people. We understand the commercial value of a rewarding and positive working environment. And we build skills and provide career development opportunities across the Group, to create a solid base for succession planning. Our senior management team is strong and stable, with an annual retention rate exceeding 91%. Our overall staff average annual turnover rate is 82%.

Creating an extensive infrastructure
Group infrastructure: Our extensive and flexible infrastructure of business centres onshore, in the UK, nearshore in the Channel Islands and Ireland and offshore in India, built over 2 decades allows us to deliver services in the most appropriate and cost effective way.

Through accessing centres of expertise, economies of scale and a choice of operating cost models, we can deliver innovative and appropriate solutions to suit each client’s aims and preferences. As we increase our economies of scale through our growing infrastructure, we can drive down our own operating costs, add greater value to our clients and increase our competitive advantage.

Offshore infrastructure: Our offshore operations in India, established in 2003, are a key and growing element of our blended operating model. We now have over 800 staff in our 2 sites in Mumbai, equating to a seat capacity of 1,300. By the end of 2007, we will have secured a 3rd site in a 2nd Indian city to build seat capacity further to 3,000 with 1,500 employees, and to strengthen business continuity. By 2009, we anticipate in the region of 10% of our current work force will be based in India.

Our offshore operations are being used to make significant savings, provide flexibility, raise service quality and deliver increased productivity. Capita is directly benefiting from offshoring some of our own back office functions, such as financial and HR administration; by transferring administration operations that support multiple client groups, such as registrar services, client account reconciliation and
SIPP administration; and by delivering some back office administration processes for existing long term contracts. Our ability to offer a standalone offshoring or blended onshore/offshore operating model to new clients also provides a strong, competitive proposition and will continue to be the main driver of growth of
our offshore operations.