London Borough of Lambeth has announced a ten year, £60 million exension of its outsourcing deal with services giant Capita.

The deal will see Capita deliver a range of services to the borough, including ICT support services and call centre management. Capita has provided revenue collection services to the borough since 1997.

Lambeth councillor for finance, Paul McGlone, said that the new contract would improve the councils standard of contact with its residents, as well as saving money.

"The service model proposed by Capita is flexible and scalable over time, meaning it is ‘future proofed’ for changes in the way people communicate with us," McGlone said. "This will lead to a much improved experience when people contact us to pay their council tax, inquire about their benefits, find out about a service or report a problem."

Capita said the contract will provide savings projected at 16.5% or £10m over its lifetime, and generate an additional £5m in council tax revenue. It won the deal through competitive tender.