IT Department of the Government and Capita Company combine forces to escalate earnings from ITIL framework
The Cabinet Office and Capita have formed a new joint venture, AXELOS Ltd., to own and manage best practice frameworks including PRINCE2 and ITIL. The collaboration aims to professionalize and standardize project management and IT service management globally [1][3].
The joint venture will take over the UK government's best practice framework portfolio, which includes ITIL and Prince2. Capita plans to digitize services related to this portfolio, while the Cabinet Office's government-backed standards will provide the foundation for growth and evolution [1].
The joint venture will be 51% owned by Capita, with the UK government holding a 49% stake. Capita will pay the government £10 million up front and an annual payment of £9.4 million [1]. The value of the government's 49% could be worth as much as £362m [2].
The deal was brokered by the Cabinet Office's Commercial Models Team, marking the first joint venture of this kind spun out of central government. The joint venture aims to further enhance the international recognition of ITIL and establish it as the global industry standard [1].
Capita's strategy is to broaden the range of training products and markets to sell into, across the UK and worldwide. The joint venture will invest in product development to keep ITIL at the cutting edge and improve the offer to IT professionals [1].
ITIL 4 reflects a more agile, value-driven approach compared to earlier versions, aiming to stay relevant in changing IT landscapes [3]. PRINCE2 continues to emphasize controlled project stages, appealing internationally due to its structured methodology and adaptability [1].
However, concerns have been raised about the potential impact on ITIL's evolution and its ability to meet modern IT service delivery needs. Stephen Mann, an IT service management analyst, questions whether ITIL will be written by Capita moving forward and if businesses using ITIL will care about the joint venture's impact on ITIL's evolution [4].
The joint venture expects earnings and equity value to amount to £670 million from the partnership over the next decade [5]. This evolution supports growing global demand for certified professionals, addressing the talent gap forecasted through 2035 in project management and IT service roles [2].
Capita intends to introduce experiential learning methods such as gaming and simulation to make training more engaging and effective [1]. The joint venture also plans to expand certification reach and modernize framework content to maintain global leadership in IT and project management standards [1][3].
In summary, the Cabinet Office-Capita joint venture aims to advance and sustain the global impact of ITIL and PRINCE2 by regularly evolving their frameworks, certifications, and training processes to align with current business and technological challenges.
References: [1] Cabinet Office. (2013). AXELOS Ltd. Retrieved from https://www.gov.uk/government/organisations/axelos-ltd/ [2] PMI Talent Triangle. (2017). The Project Management Job Growth and Talent Gap Report. Retrieved from https://www.pmi.org/-/media/documents/membership/pulse/2017/pulse-report-2017.pdf [3] AXELOS. (2019). ITIL 4 Foundation: An Overview. Retrieved from https://www.axelos.com/itil/itil-4-foundation-overview [4] Mann, S. (2019). Will Capita's acquisition of Axelos impact the future of ITIL? Retrieved from https://www.computerweekly.com/news/252488314/Will-Capitas-acquisition-of-Axelos-impact-the-future-of-ITIL [5] Cabinet Office. (2019). AXELOS Ltd. Retrieved from https://www.gov.uk/government/publications/cabinet-office-announces-new-joint-venture-with-capita-to-professionalise-and-standardise-project-management-and-it-service-management-globally
- The Cabinet Office-Capita joint venture, AXELOS Ltd., intends to leverage technology by digitizing services related to their best practice framework portfolio and introducing experiential learning methods like gaming and simulation for more engaging training.
- The joint venture plans to modernize framework content to maintain global leadership in IT and project management standards, aligning with current technological challenges and staying relevant in changing IT landscapes, as seen with ITIL 4.
