Siemens scoops BBC Technology deal

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Siemens Business Services, part of the Siemens Information & Communications group, has emerged as the Single Preferred Bidder for a new Technology Framework Contract (TFC) for the BBC, and as the new owner of BBC Technology.The initiative to procure a new technology contract followed an internal strategic review of the BBC's technology requirements, which identified potential annual savings in the order of £20 million (E30 million) to £30million if its technology services were outsourced. An EU Procurement Process then followed.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 – expected by autumn 2004 - the contract is for 10 years and is worth up to £2 billion.

BBC Technology – which reported a turnover of £230 million - provides products and services for the BBC, other broadcasters, platform owners, content owners and government organisations. Its internal and external clients include BBC News, BSkyB, DirecTV, ESPN, Hutchison 3G, SABC and Scottish Enterprise.