Siemens Business Services plans to sell technology from
the BBC's technology division and review IT licensing deals at the
BBC following the finalisation of its £2bn IT outsourcing contract
with the broadcaster earlier this month.
The 10-year deal coupled the sale of BBC Technology - a commercial
subsidiary of the BBC which employs about 1,400 people - with a
contract to run the BBC's IT.
In an interview with Computer Weekly last week, Siemens managing
director Tom White said the company would sell software developed
by BBC Technology, such as Colledia, which is used to create and
distribute programmes and other media content, and also develop and
market new technology.
"We are seeking to use the skill sets acquired to launch additional
services for the broadcast media, for example offering standard
voice [and data] communications on a common platform or through
mobile communications," said White.
"What customers are looking for is to have a common IT platform
[running] voice over IP so you have a common transportation layer
for voice, data and media activities."
Another task for Siemens will be helping the BBC move away from
tape-based methods towards making programmes digitally on desktop
PCs.
Siemens will use the BBC contract as a base to offer other
broadcasters consultancy and managed services and build on the
current trial of a "video on demand" service. It will also invest
in network technology, including fibre optics, to support the BBC's
regional operations.
White said that Siemens would review the BBC's IT licences with
suppliers and would consider using open source technology. "[The
BBC's] purchasing power and economies of scale should ensure it is
not permanently tied into one hardware supplier. And we would
clearly be looking for simplification in the software
landscape."
IT staff at BBC Technology will be integrated with Siemens by the
end of the year. The deal originally faced opposition from
broadcasting technicians' union Bectu, but strike action planned
for July was called off after concerns about terms and conditions
for BBC IT staff were met. Siemens has guaranteed that there would
be no compulsory redundancies in the first 12 months of the
contract.
Luke Crawley, supervisory official at Bectu, said the union would
ballot its members to see whether they were satisfied with the
agreement and whether they supported the sale of BBC Technology. He
said Bectu had requested a meeting with Siemens to discuss how to
move forward.
Trevor Brignall, director of business development in Capgemini's
telecoms, media and entertainment practice, said, "[BBC Technology]
has been fiercely independent within the BBC and it now has to be
brought into a much larger organisation.
"It has to be aligned with Siemens culture but retain its
independence."
Brignall said that demand for technology that digitises media
content was growing and that BBC IT staff transferring to Siemens
could find themselves working on cutting-edge technology for
broadcasting companies that have traditionally been their
rivals.
BBC IT outsourcing timetable
November 2003 BBC announces plans to sell its wholly-owned
commercial subsidiary, BBC Technology, after a review identified
potential annual savings of £20m to £30m.
December 2003 The BBC calls for bidders to deliver a 10-year,
£2bn IT outsourcing deal. The winner will also acquire BBC
Technology. The outsourcing contract includes the provision of
hardware, systems and applications, telephony and
consulting.
April 2004 The shortlist of eight bidders is revealed. It
includes Computer Sciences Corporation, Fujitsu, EDS, Accenture and
IBM.
May 2004 The BBC cuts the shortlist of potential suppliers down
to three: Accenture, Computer Sciences Corporation and Siemens
Business Services.
June 2004 Computer Sciences Corporation pulls out of competition
for the contract. Union Bectu warns the BBC that it plans to ballot
members at BBC Technology about taking industrial action over the
sale. July 2004 BBC names Siemens Business Services as the
supplier for the contract.
October 2004 BBC completes deal with Siemens Business
Services.