Capita Secures £62M Contract Renewal, Bolstering AI and Nearshore Capabilities

Capita plc (CPI.L) has announced a significant four-year contract renewal with a major European telecommunications provider, valued at £62 million. The deal, commencing in January 2026, underscores Capita's strategic shift towards AI-driven solutions and expanded nearshore delivery.

The renewal solidifies Capita's role as a key service provider for the telecom giant, a relationship that began in 2014. The agreement spans multiple customer service lines, including technical support, chat and messaging services, and inbound sales.

Capita's transformation strategy includes enhancing delivery capabilities across various European locations. The company is implementing Centrical and AI-driven tools to drive improvements in key performance indicators (KPIs).

These AI-powered tools target metrics such as Average Handling Time (AHT), Net Promoter Score (NPS), and sales conversion rates. The focus is on creating a more efficient and customer-centric service model.

Corinne Ripoche, CEO of Capita Experience, emphasized the importance of the renewal. “This renewal marks a significant milestone in our partnership, which started in 2014. By expanding our nearshore footprint and embedding AI-powered performance tools, we’re delivering a more agile, cost-effective and customer-centric service model. It’s a clear demonstration of Capita’s ability to evolve with our clients and support their strategic goals.”

This contract renewal signals positive momentum for Capita, affirming its ability to retain and expand relationships with major clients. The focus on AI and nearshore capabilities aligns with industry trends and positions the company for sustained growth.

The markets are likely to view this renewal favorably, given the contract's substantial value and the strategic implications for Capita's future direction. The move strengthens Capita's foothold in the competitive customer experience market.

The renewed contract provides revenue visibility for Capita over the next four years, reducing uncertainty and potentially boosting investor confidence. This is especially important given the company's efforts to streamline operations and focus on higher-margin services.

The markets will be closely watching how Capita executes on its AI and nearshore strategies, as successful implementation is crucial for realizing the full benefits of this contract. Any significant improvements in AHT, NPS, or sales conversion could further enhance Capita's reputation and attract new clients.