Capita £370M bid 40% under UK.gov estimate for Oracle HR and finance system project, court case reveals

The UK Department for Work and Pensions (DWP) accepted Capita's £370 million bid to manage its Oracle-based HR and finance system, 42% below its own £642 million cost model. Rival bidder Sopra Steria is challenging the decision, alleging Capita's bid was abnormally low, while the DWP defends the contract as part of its shared services strategy. IBM and Big Red were separately awarded a £711 million Oracle-based SaaS contract in 2024.