I wrote last month about the first of the government’s planned mutuals. My Civil Service Pension is the body that administers 1.5 million civil service pensions. The government is turning it into a mutual that will partner a private sector company.
The organisation will be owned by three groups: the 400 plus staff, the government and a supplier. The supplier will run the service and also be a shareholder but will have to bid for reappointment after five years. This is a way for the government to fund upgrades to the service by passing the cost onto a supplier. The supplier gets a big contract and a shareholding for the duration of the contract.
A total of 14 private companies bid to be part of this and a shortlist of four was drawn up. All final bids from the four short-listed companies; Capita, Wipro, Xafinity and JLT, were due in on Friday 4 November. But it seems that Wipro decided not to and pulled out.
I am currently trying to find out why it pulled out at such a late stage.
This mutual model could become a more popular method for the government top outsource business processes, so the reason for Wipro’s exit will be interesting.