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Helping councils achieve vital efficiencies is set to bring further dividends for outsourcing specialist, Capita. Big cuts in public spending will present a headache for public services, but also an opportunity for Capita Group, according to its chief executive, Paul Pindar, who predicted his business would remain buoyant. Local government is a core part of the firm's business, which Mr Pindar predicted would grow as more councils looked to streamlining as a way of saving money. He said: ‘There is more pressure than there's ever been, but we're here to deliver to our customers in a very difficult environment.' Mr Pindar spoke to The MJ after the company issued ‘as expected' half-year results to the City last week, with underlying profits up 14% to £159.6m. This year, it has won major contracts and renewals with Breckland DC, Charnwood BC and the Driving Standards Agency. Most of the authorities in the UK have yet to embark on major efficiency programmes, despite tough targets from the Government, and this is why the firm expects to deepen its presence in the sector. Mr Pindar told The MJ: ‘Local authorities have done a lot to make themselves more efficient. ‘But our view is we can be a major partner for local authorities which wish to get their budgets back in step. That's going to be a great area of opportunity.' He signalled that the firm considered bidding directly to central Whitehall departments was the next logical step for the company which now employs 36,000 people. Property services and procurement also offer new opportunities. City analysts remain gloomy on whether the firm can continue its growth against the backdrop of reductions in public spending, but Mr Pindar pointed to a £3bn pipeline of new business and the opportunity government represents. He said: ‘We are more enthused and energised because that fiscal position is so desperate. There are countless reports sitting on Whitehall shelves on efficiency. We've got to move to implementation.'

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BUSINESS

Efficiency is key to Capita prosperity

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