Sopra Steria’s £370M Capita spat heads for 2028 courtroom showdown

← Back to the feed

Sopra Steria’s £370M Capita spat heads for 2028 courtroom showdown

The Register · 2 hours ago

Sopra Steria will get its day in court over a £370 million UK government shared-services contract awarded to rival Capita, with a trial date set for early 2028 pending settlement talks. The French IT services firm alleges Capita's winning bid, led by the Department for Work and Pensions, was "abnormally low" and relied on staffing levels far below those currently used, raising questions about how the deal was awarded and whether it truly represents value for money.

The contract, covering finance and HR shared services across several Whitehall departments, was valued at £370 million over ten years, well below the £958.7 million estimated during the tender stage. Sopra Steria, which currently runs some of these services through its wholly owned SSCL business, claims Capita's bid was 42% below the DWP's own "Should Cost Model", which had put the total price at £642 million. Capita and the DWP maintain the procurement process was robust and fair. The dispute, listed for seven weeks from 17 January 2028 at the Technology and Construction Court, comes as Capita also faces scrutiny over its troubled handling of the Civil Service Pensions Scheme, which has left some of its 1.7 million members facing payment delays.

  • Sopra Steria contests £370m Capita contract award; 2028 trial set
  • Alleges Capita's bid was 42% below DWP's own cost estimate
  • Dispute coincides with Capita's separate pension scheme problems

Business Markets

Read the full article at the source →