The BBC has awarded Capita a 10-year HR services contract to oversee its recruitment, pay, staff development and occupational health in a groundbreaking outsourcing deal.

About 260 jobs will transfer to Capita, with a further 100 created in a new Belfast service centre.

“This deal is a significant step for us in ensuring the BBC is fit for the future and continues to invest in creating innovative programmes and services for our audiences,” said Stephen Dando, director of BBC People.

Rod Aldridge, executive chairman of the Capita Group, says the deal will deliver enhanced services and significant cost savings for the BBC.

The contract is due to become operational from April subject to contract signature, and has a clause allowing it to end after five years.