Outsourcing giant Capita, one of Scotland s biggest employers, could be poised to confirm a groundbreaking deal with Edinburgh City Council to take over the running of back-office services. The group claims that its extra efficiency could save the council up to 30% of costs and is due to produce an update on talks with the Scottish authority when it releases half-year trading figures on Thursday. Typically, the move would mean a transfer of staff to Capita which already employs more than 3500 in Scotland. However, Birmingham City Council caused a storm recently when it became the first local council to announce plans to move up to 100 IT jobs to India in partnership with Capita. Capita already employs more than 4000 people in India and is also set to open a major new centre in Poland. an agreement with Edinburgh City Council would be seen as a major coup for Capita, which faces a drive to bring down its own costs as a result of the Government s austerity drive and moves to bring in extra competition from voluntary organisations and employee groups. Capita, headed by chief executive Paul Pindar, earns almost half of its money from the Government and local authorities although much of its current order book is coming from the life and pensions sector. Brokers expect news of little or no organic growth at the half-year stage but say the company has a healthy