The BBC has completed a £2bn IT outsourcing deal with
Siemens Business Services.
As part of the part of the innovative 10-year deal Siemens has
acquired BBC Technology, a commercial subsidiary of the BBC which
employs around 1,400 staff.
BBC Technology will be renamed Siemens Business Services Media
Holdings and will be led by Tom White, managing director of Siemens
Business Services. The BBC expects to save around £30m a year over
the life of the contract.
The BBC last week received approval for the sale from the
Secretary of State for Culture, Media and Sport as well as formal
approval from the board of governors.
John Varney, chief technology officer at the BBC, said, “The
deal with Siemens Business Services is significant for the BBC as
we enter a new phase in the way we work and operate. Technology is
vital to the BBC’s future and in ensuring we build public value in
everything we do.”
The deal originally faced opposition from technicians union
Bectu but planned strike action for July was called off after
concerns over terms and conditions for BBC IT staff were met.
Gerry Morrissey, Bectu's assistant general secretary, said,
"This decision will come as a blow to our members in BBC Technology
who have opposed this sell-off since it was first proposed. Despite
the protection we have won for their terms and conditions after the
sale, it could turn out to be bad news for some of them once jobs
start to go, and it's certainly not good for the BBC in the long
term."
The outsourcing deal, which has been described as one of the
deals of the decade, will pose a number of challenges according to
experts. Theses include the retention of key IT staff, who already
work at BBC Technology and avoiding a culture clash in the
commercial approach between the supplier and user.
Earlier this year John Varney told Computer Weekly that the sale
of the BBC’s technology division and outsourcing deal would provide
a long-term cash boost for the BBC’s IT.
One of the main tasks facing Siemens will be helping the BBC to
move away from tape storage and towards making programmes digitally
on desktop PCs.