A statement from the firm said: 'While Capita will continue with its policy of making small, selective acquisitions, it is likely that our acquisition activity will be lower than the last three years.'
A spokeswoman for the firm said the announcement marks a change of direction and the statement was to 'let people know what to expect'.
Shareholders could be in for a windfall as the firm announced it would buy back 10% of its shares.
of the issued share capital, 'with the group placing an increased focus on organic growth from its extensive client base.'
The latest comments contrast with previous statements from the
firm as it sought to gain a substantial share of the public sector outsourcing market.
Executive chair Rod Aldridge said: 'Our business remains in great shape with excellent forward visibility and strong free cash flow. We remain comfortable with analysts' consensus forecasts for 2002-03.'