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Carphone Warehouse outsources customer service to Capita


10-year deal is worth an estimated £160mn

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Carphone Warehouse has signed a 10-year £160 million customer service and support outsourcing deal with Capita.

Capita will provide all non-store customer contact in a number of different areas across Carphone Warehouse's business.

Capita will deliver a range of services such as multi-channel customer support, sales and customer acquisition, debt collection, customer retention and revenue growth and technical support, all supported by data-driven analytics. The new service is expected to start on April 1 this year.

Capita CEO Paul Pindar said: "Carphone Warehouse is determined to ensure its customers are supported by an organisation with a track record of using analytics and process management to provide a great customer experience and value-added services."

Capita will take over Carphone's existing contact centres and business process operations in Acton and Warrington. The deal covers a range of front office services including sales, customer services, first line technical support, complaint handling, collections and revenue management. The deal also covers Carphone's Talkmobile and Geek Squad divisions.

Around 600 Carphone staff will be transferring to Capita under TUPE, with the Acton and Warrington sites continuing to be used until 2014. Capita plans to eventually establish a centre of excellence in Preston, and also provide support from other locations.

John O'Brien, an analyst at TechMarketView, said: "As far as we can tell Carphone will now have outsourced all of its customer contact functions. Carphone is a significant first generation outsource for Capita and an endorsement of the recent acquisitions of Ventura and Vertex Private Sector for customer management."

O'Brien said Capita was now the largest player in the UK customer management space.

In 2009, Carphone signed a “multi-year” infrastructure services deal with IBM for an undisclosed amount. Under the agreement, IBM manages Carphone's service desk, server, storage, desktop, network and data centre infrastructure.

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Carphone Warehouse outsources customer service to Capita
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