In 2012, Capita saw a significant growth of 14%, yet its IT sector currently faces intense pressure
Capita's IT Division Struggles in 2012 but Recovers with Strategic Moves
In 2012, Capita, a leading UK services company, faced challenging times for its IT services division. The economic conditions took a toll on the division, leading to a 15% decrease in revenue compared to the previous year. The revenue for IT services and consulting in 2012 was £638 million, a significant drop from the £749 million recorded in 2011.
Despite the adversities, Capita responded with strategic restructuring and divestment measures. The company focused on streamlining operations, reducing costs, and refocusing on core areas where it could be more competitive and profitable. This approach involved selling or exiting non-core and underperforming IT units and investing in technology and service improvements to enhance competitiveness.
One of the strategic moves Capita made was the acquisition of Northgate Managed Services Limited for £65 million earlier this month. Northgate Managed Services Limited offers cloud-based infrastructure solutions and specialist managed services, a move aimed at complementing Capita's existing IT services business.
Despite the struggles in 2012, Capita reported a 14% increase in revenue to £3.4 billion for the year. The company's overall performance was robust, with its IT services division being the only area that suffered. Historical context from Capita’s later financial disclosures and market analysis indicates ongoing efforts over the years to improve its IT services performance through transformation programs and portfolio adjustment.
While the specific details of Capita’s actions in 2012 are not extensively covered in the recent search results, this approach aligns with common corporate strategies for handling a struggling IT division during economically difficult periods. For more detailed specifics about the exact measures in 2012, additional historical financial reports or company statements from that period would be required.
- Capita's strategic moves in 2012, which included streamlining operations and focusing on core areas, led to investments in technology to enhance the company's competitiveness, alongside the acquisition of Northgate Managed Services Limited for cloud-based infrastructure solutions.
- In an attempt to improve its IT services performance and counteract the 15% decrease in revenue in 2012, Capita pursued strategic initiatives involving divestment from underperforming IT units, technology improvements, and transformational programs.
