Marsh selects Capita in a £200m 10-year deal to outsource Marsh UK’s back office staff.

Marsh UK is set to restructure its front of house staff following the transfer of 650 back office staff to Capita, its reform chief said this week.

Marsh has selected Capita over Xchanging in a £200m 10-year deal to outsource Marsh UK’s back office staff.

The Capita deal, which will see 650 staff in Norwich transferred onto Capita’s books, was only a precursor to a front office restructure, according to Marsh UK’s transformation director, Ian Clarke.

“We are looking to transform the UK business front to back”, he said, adding that the initiatives form part of global plans to increase revenues to $1bn and profit margins to 20% by 2010.

Clarke said the current projects had been initiated by Marsh UK chief executive Martin South about four months before new global chief executive Daniel Glaser took control in December.

Clarke also said that Capita expects to use the new set up as a back office support hub, with the ability to attract other brokers to its new facilities.

Another initiative will result in Marsh writing more mid-market business, with a focus on small to medium enterprises (SMEs), according to a source close to the broker.

Marsh global chief executive, Daniel Glaser has already begun restructuring on an international level, which has seen multiple changes in senior management. The broker announced this week that David Batchelor, currently head of Marsh Asia Pacific, will succeed Alex Moczarski as chief executive of Marsh’s operations in Europe, the Middle East and Africa (EMEA). Moczarski was appointed as president of Marsh’s international division earlier this month.