23 Oct 2006
The BBC expects to save more than £200m over the next 10 years when it signs a finance and accounting outsourcing deal with Xansa valued at close to £85m.
The deal is part of the broadcaster’s strategy to minimise the cost of support services and the savings will be released to deliver more creative programming.
Outsourcing and technology company Xansa has been named preferred supplier for the contract, replacing current outsourcing partner EDS, following a competitive bid process.
The new contract is expected to be signed in November, with Xansa taking over responsibility for the services in July, 2007. Savings could be as much as £200m, the equivalent to 1.5 million license fees.
Xansa will work closely with BBC Finance to deliver finance and accounting services such as purchasing and sales transaction processing, artist and contributor payments, financial management and project accounting, payroll processing and expenses.
Group finance director Zarin Patel says the BBC will benefits from Xansa’s proven expertise in managing outsourced finance and accounting services.
‘I believe this is an excellent deal for the BBC and will help us further transform our finance and business processes,’ he said.
‘By moving our transaction processing to India, we are demonstrating that we are prepared to take bold decisions that offer the licence-fee payer value for money, while maintaining the highest quality of service delivery.’
Xansa will also work with Siemens Business Services to provide infrastructure, applications, support and customer service facilities.
All voice contact will remain in the UK, but other services like transaction processing will be carried out at Xansa’s shared service centre in India.
Xansa chief executive Alistair Cox says the company's technology and back office services will allow the BBC to do more with its own business, minimise administrative costs and free up funds to invest in its core business of creative programming.
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