Procurement of technology
provision and sale of BBC Technology to complete this autumn
The BBC has announced today that, subject to contract,
Siemens Business Services has been selected as the Single Preferred
Bidder for a new Technology Framework Contract (TFC) for the Corporation,
and as the new owner of BBC Technology.
This announcement follows a rigorous EU Procurement
Process and approval by the BBC's Executive Board.
The sale is subject to the approval of the BBC Governors,
the Secretary of State for Culture, Media and Sport and clearance by
the European Commission under the terms of the EC Merger Regulation.
Subject to the necessary approvals, the contract is
for 10 years and is worth up to £2bn.
Siemens Business Services has demonstrated its ability
and commitment to invest in technology services and innovation to meet
the BBC's future technology requirements, with significant projected
annual cost savings.
It has also fulfilled the BBC's stringent evaluation
criteria in the following areas:
Scale, resource and funding levels to fit with the BBC's technology
vision over the next 10 years
Cultural fit and demonstration of valuing people
Ability to deliver best value for money in the procurement of technology
Realise best value for BBC Technology
Commitment to innovation
As part of the BBC's vision to revolutionise the use
of technology to make and distribute programmes, Siemens Business Services
will provide the BBC with the skills and expertise to reach its goals
for the next 10 years.
The BBC has been consulting with Bectu since November
2003 and will continue to consult during this last phase of the process.
Subject to the necessary approvals, the deal will complete
by autumn 2004 once final contract negotiations are complete.
Notes to Editors
The move to procure a new technology contract followed
an internal strategic review of the BBC's technology requirements.
The review identified potential annual savings for the
BBC of at least £20-£30m if its technology services were outsourced.
An EU Procurement Process then followed.
About BBC Technology
Founded in March 2001, BBC Technology 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 helps organisations create,
manage and distribute content more effectively across multiple platforms.
BBC Technology's products and services include: the
award-winning Colledia™ product portfolio which creates a tape free
broadcast environment, media communications, internet solutions and
Customers include: BBC News, BSkyB, DirecTV, ESPN Inc,
Hutchison 3G, SABC and Scottish Enterprise.
BBC Technology has 1400 staff and a turnover of £230m.
About BBC Technology
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.
The division is lead by John Varney, CTO, BBC and a
Head of Technology (HoT) for each division in the BBC.
Siemens is a global innovator in the information, communications
and media industries.
The Company has 415,000 people working to develop leading
edge products, design and install sophisticated systems and projects,
and tailor a wide range of services for media and technology companies
Its world-leading research and development programmes
are crucial to maintaining its 150 year heritage of new inventions and
its ability to keep customers in 190 countries at the leading edge of
In an age of converging voice, data, video and media
technology, Siemens is committed to driving technology convergence to
the benefit of the client's business.
Siemens Business Services is leading the bid on behalf
of the Siemens Information & Communications group, which generated revenues
of €22bn globally in 2003.
Siemens is bringing together Siemens Information and
Communications Networks, Siemens Information and Communications Mobile
and a team of partners.
Bectu is the independent union for those working in
broadcasting, film, theatre, entertainment, leisure, interactive media
and allied areas that are primarily based in the United Kingdom.
The union represents permanently employed, contract
and freelance workers within these sectors.