May 2013 Andy Shenstone / Julie Tolley Education Market Director, Capita plc & Director Education, Consulting Capita’s consulting business

Where does Capita touch UK HE? 2

Market dynamics 3 Market DynamicsOur response UK HE is a strong sector facing multiple challenges: Expansion of access Market contestability Reduced applications Student choice and scrutiny of VFM Less public funding - with further significant reductions to come? Increased international competition. ‘First movers’ for shared services are coming to market but need help to shape their thinking, requirements and contractual models. Developed (and testing with our expert network) an holistic offering aligned with key institutional outcomes (e.g. employment prospects for graduates) as well as efficiency and effectiveness Building partnerships with credible HEIs with strong brands that can co-deliver solutions To actively seek out sector leaders with the appetite to come to market and support their ambition.

Economic rationales  Cost reduction (cost reduction / outcome, less FTE costs)  Reduce leverage (reduce debt on balance sheet, private finding of public infrastructure)  Increased revenue  Capacity management (scale and share across multiple customers) Delivery rationales  Simplicity  Risk transfer  Increased service outcome – competitive advantage  Lack of skills / resources Rationale for partnering – an ‘Inflexion Point’? 4

Flexible  Choice of services and delivery options  Standard support service offerings such as HR, Finance and FM  Services unique to the HE sector including registry, student services and careers advice  Clients will be able to buy complete services or individual service elements  Onshore, near shore or offshore Commercials  Choose any combination of service offerings - £ will be more attractive, where a broader range of services are purchased  In addition other potential commitments will also be made available:  Student attraction / retention / employability  Graduate jobs  Student satisfaction and associated league table positioning The offering 5

Business development services  Entrepreneurial development  Research funding  Improved retention  Specific requirements of universities Services Front office  VLE  Library services  Foreign student  Academic registry  Marketing & UK recruitment  Academic development and review  Centre for excellence in learning and teaching Back office  Estates  Finance  Health and Safety  Human Resources  Planning Office  Secretary's Office  International offices  Student services  Information technology 6 Commercial in Confidence

University of Strathclyde - Strategic Technology Partnership  Will include a ‘Wider Contribution Fund’, through which Capita and our partners (IBM, Dell, Apple) will fund research, teaching and knowledge exchange activities  Research studentship (PhD, fees + stipend) and student placements  Cash bursaries for eligible socially disadvantaged students  Funding for equipment to set up computer clubs in local schools Cabinet Office – ‘Best Management Practice Portfolio’  JVCO with Cabinet Office  Commercialising IP (Prince 2, MSP, ITIL)  IP advisory service to SMEs and new services  Multiple universities aligned to enable domestic and overseas provision New contracts in