Council cancels £48m IT contract with Capita_3
18 July 2012
The public-private partnership scheme has suffered a huge blow with the collapse of a major contract between IT services supplier Capita and Lambeth council.
The council terminated the housing benefit element of a £48 million support services contract halfway through its seven-year duration. Lambeth will take the service back in-house from July.
Capita will continue to supply its IT service, on which a large amount of the council’s data is stored, and a call centre.
The IT group demanded £10.3 million a year -...