DOING BUSINESS BETTER. TOGETHER

Capita in £75m overcharging row

7 Dec 2009 12:00 AM | Anonymous

British outsourcing group Capita is embroiled in a row over claims that it overcharged schools for providing IT services. School software provider Bromcom said in a statement it had complained to the Office of Fair Trading (OFT) over Capita's Children's Services for overcharging by £75 million.

According to a Reuters report, Bromcom said it had made the complaint over what it called anti-competitive practices, including tying and bundling together software products which should be sold separately and charging inflated annual software maintenance charges to schools. It said it believed schools had overpaid over the past 12 years.

In a statement, Capita commented, "Capita Children's Services has already, through its solicitors, robustly rebutted the unfounded allegations made by Bromcom and we have had no contact from the OFT whatsoever with respect to this matter.

"We have served the education market for a number of years and grown our business through supplying innovative products to meet the changing needs of the market, maintaining good client relationships and working successfully with other suppliers."

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