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BBC Closes £2billion Deal With SiemensSiemens to provide Technology Framework Contract for next decade (October 01, 2004)
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 £2billion. 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 Ltd.
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 BBCs technology strategy and development, to deliver the BBCs 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 contract.
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 future.
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 BBCs 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 BBCs 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. ?
This procurement of the technology services contract and the sale of BBC Technology followed an EU procurement process and approvals by the BBCs 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 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 Technologys 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 BBCs technology strategy and delivering best technology practice across the BBC to create and deliver the technical innovations that make the BBC a world leading broadcaster. The division is led by John Varney, CTO, BBC and supported by a Head of Technology 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 worldwide. Siemens employs more than 18,000 people in the UK providing innovative, high-quality services and solutions to customers in a diverse range of industry sectors including power, automation and control, information and communication, medical, transportation, lighting, and household.
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 clients 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.
For more information, visit the companys Web site at www.sbs.siemens.co.uk.
Related Keywords:BBC, Siemens, Technology Framework Contract, TFC, Siemens Business Services, BBC Technology Ltd, Tom White, Siemens Business Services Media Holdings Ltd., John Smith, John Varney, BBC Technology Direction,