BBC appoints Siemens Business Services to provide Technology
Framework Contract for next decade
The BBC has announced today that it has completed the procurement for
a 10-year Technology Framework Contract (TFC) with Siemens Business
Services worth almost £2bn.
As part of the landmark deal, Siemens Business Services has acquired
BBC Technology Ltd, a commercial subsidiary of the BBC.
Led by Tom White, Managing Director, Siemens Business Services, BBC
Technology will be renamed Siemens Business Services Media Holdings
The BBC has received approval for the sale from the Secretary of State
for Culture, Media and Sport and approval from the BBC Governors for
both the procurement and the sale.
The two-part deal covering both contract and acquisition - the first
of its kind in the media industry - means Siemens Business Services
will work closely with BBC Technology Direction, the department responsible
for the BBC's technology strategy and development, to deliver the BBC's
technology services across the whole corporation for the next 10 years.
The BBC expects to save around £30m per annum over the life of the
John Smith, Chief Operating Officer, BBC, commented: "This deal marries
both our legendary broadcasting experience in making great programmes
with the resource and expertise of a global IT player - ensuring the
BBC can achieve its Building Public Value vision to secure our digital
"The value and substantial savings created from the sale of BBC
Technology and this procurement of our technology services is a significant
step for us in ensuring the BBC is fit for the future and continues
to create innovative programmes."
As part of the deal, Siemens Business Services will also provide the
skills, expertise and investment to support the BBC's technology vision.
This vision aims to put creative tools on desktop computers in the
BBC by the end of the decade, enabling a revolutionary approach to programme
making in a digital Britain.
John Varney, Chief Technology Officer, BBC, said: "The deal with Siemens
Business Services is significant for the BBC as we enter a new phase
in the way we work and operate.
"Technology is vital to the BBC's future and in ensuring we build
public value in everything we do.
"We look forward to developing our relationship with Siemens Business
Services to meet our technology vision over the next decade. "
Notes to Editors
This procurement of the technology services contract and the sale of
BBC Technology followed an EU procurement process and approvals by the
BBC's Executive Board, BBC Board of Governors, the Secretary of State
for Culture, Media and Sport and clearance by the European Commission
in accordance with the EC Merger Regulation.
About BBC Technology
Founded in March 2001, BBC Technology provides products and services
for the BBC, other broadcasters, platform owners, content owners and
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.
About BBC Technology Direction
BBC Technology Direction is responsible for the BBC's technology strategy
and delivering best technology practice across the BBC to create and
deliver the technical innovations that make the BBC a world leading
The division is led by John Varney, Chief Technology Officer, BBC,
and supported by a Head of Technology for each division in the BBC.
Siemens is a global innovator in the information, communications and
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
In an age of converging voice, data, video and media technology, Siemens
is committed to driving technology convergence to the benefit of the
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