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Outsourcing company Capita has raised its savings target as it expects to lay off around a fifth of staff who leave voluntarily, while increasing its use of artificial intelligence (AI).
Main contractor for Government and local authorities, which employ around 41,000 people worldwide, on Tuesday raised their savings target from £160m to £250m.
Part of this is said to be achieved by increasing the use of AI, including generative artificial intelligence, to speed up certain tasks.
This includes using AI for its contact centers and local government customers, resulting in a reduction in average handling times by around a fifth, Capita said.
He also found early signs that adopting technology was helping him win new contracts with customers.
Furthermore, Capita said voluntary absenteeism – meaning when staff decide to leave the company – of around 21% will contribute to the savings target and reduce the need for redundancies.
Capita also revealed that it expects to see around a £20m annual increase in employer national insurance rates next year, but expects those costs to be offset by other savings.
The business reported that revenues, on a like-for-like basis, were around 8% lower in the 11 months to the end of November compared to the previous year.
This was partly due to contract losses announced last year and delays in the start of two new contracts, Capita said.