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BBC announces Siemens Business Services as Single Preferred Bidder

Category: BBC

Date: 07.07.2004
Printable version

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 consulting services.

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 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.

The division is lead by John Varney, CTO, BBC and a Head of Technology (HoT) for each division in the BBC.

About Siemens

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 worldwide.

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 communications technology.

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.

About Bectu

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.



Category: BBC

Date: 07.07.2004
Printable version


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