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06.02.04


ABOUT THE BBC


BBC announces shortlist of bidders


Procurement of technology provision and sale of BBC Technology reaches next round


The BBC has announced today that a second stage shortlist of bidders have been selected to the next round in the procurement process for the new technology services contract for the Corporation, and sale of BBC Technology.


The sale is subject to the approval of the Secretary of State for Culture, Media and Sport. The contract is worth up to £2 billion.


Among the shortlist are CSC, Fujitsu, EDS, Capita, Accenture, IBM, Logica and HP.


The move to procure a new technology contract followed an internal strategic review of the BBC's technology requirements for the next decade.


The review identified potential annual savings for the BBC of at least £20 million if its technology services were outsourced.


Combining the procurement with the sale of BBC Technology Ltd means the BBC can leverage maximum value for the Corporation whilst continuing to invest more money into its programmes and services.


John Varney, Chief Technology Officer, BBC, commented: "We have received really positive feedback from the market about this deal, and are delighted to be able to announce that our timetable for procurement is on track.


"During the next phase of the process there will be a rigorous evaluation of not only the technology expertise and operations of these bidders, but their culture and fit with the BBC - this is a crucial part of our negotiations."


The process for procurement and sale will be conducted in full consultation with staff and the Unions.


Notes to Editors


About BBC Technology Direction


BBC Technology Direction is a global operation within the BBC that aims to identify the technology requirements for the Corporation now and in the future.


The division is accountable for both delivering best technology practice across the BBC, and reducing the cost of production processes, along with creating and delivering the technical innovations that make the BBC a world leading broadcaster.


About BBC Technology Ltd


Founded in March 2001, BBC Technology Ltd provides products and services for the BBC, other broadcasters, platform owners, content owners and government organisations.


Drawing on eight decades of pioneering technical expertise and innovation for the BBC, BBC Technology Ltd helps organisations create, manage and distribute content more effectively across multiple platforms.


BBC Technology Ltd's products and services include: the award-winning Colledia product portfolio which creates a tape free broadcast environment, media communications, internet solutions and consulting services.


Customers include: BBC News, BSkyB, DirecTV, Inc., ESPN Inc, Hutchison 3G, SABC and Scottish Enterprise.


BBC Technology Ltd has 1,400 staff and a turnover of £230 million.


About BECTU


BECTU is the independent union for those working in broadcasting, film, theatre, entertainment, leisure, interactive media and allied areas who are primarily based in the United Kingdom.


The union represents permanently employed, contract and freelance workers within these sectors.


www.bectu.org.uk


The BBC is not responsible for the content of external internet sites


Related press release


BBC to sell Technology subsidiary (27.11.04)


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