Capita, the FTSE-100 outsourcing giant, has been given 'preferred bidder' status on a contract to provide call centre and council tax collection services for Lambeth council in South London.Capita originally won the contract in 1997 but it had come up for renewal this year. Councillor Paul McGlone, Lambeth Council Cabinet Member for Finance said: "We are determined to make the whole experience of contacting the council easier and as hassle free as possible. The new partnership with Capita will ensure we continue to improve the quality and standard of contact with our residents, but also save money."The contract is expected to be worth £60m over 10 years but with the possibility of extending its scope to up to £300m.The announcement comes as many local councils assess their budgets in the light of severe cuts in central government funding.BS