A GOVERNMENT contractor has won a deal to manage a call centre for electronics retailer Dixons.

Capita Group is taking over the operation of Dixons' site at Nunnery Square, Sheffield, under the terms of the five-year £90m contract.

It said it would handle all customer service, product and sales inquiries for Dixons and its sister companies The Link, Currys and PC World.

The deal includes responsibility for handling Dixons' contract to supply narrowband technical support to Freeserve customers and to deal with insurance-related customer queries for Dixons Group Insurance Services.

The 800-strong workforce at the Sheffield call centre will transfer to Capita, which employs 650 people in Darlington and 250 on Tyneside, and will continue working at the site.

The contract includes a commitment by Capita to introduce improvements for Dixons, including voice recognition software.

Dixons Group chief executive John Clare said: I am confident our relationship with Capita will bring significant benefits and service improvements to customers over time."

Rod Aldridge, Capita's executive chairman, said: "The new employees will automatically join Capita's staff development programme and benefit from being part of a group whose core focus is delivering quality customer services."

Capita, which also administers the £5 congestion charge on motorists entering the centre of London, last week announced it had won a £430m management contract from children's savings group The Children's Mutual, in Tunbridge Wells.