BBC closes Technology deal with Siemens

The BBC has completed the procurement for a 10-year Technology Framework Contract (TFC) with Siemens Business Services, worth almost £2 billion.
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 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 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 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.”
“We are absolutely delighted to be working in partnership with the BBC,” said Tom White, UK managing director for Siemens Business Services. “This is an exciting time for the media industry and we are well-positioned at the forefront of an emerging market, where IT, communications and broadcast technologies converge.”
All 1,400 staff from BBC Technology will transfer into Siemens Business Services.
“We’re creating a platform to grow our media business internationally. BBC Technology has already established itself firmly in the UK and US markets, and we are committed to both these key markets, and their existing customers,” added White. “Our intention is to capitalise on BBC Technology’s heritage by combining the company’s portfolio of products and services – including award-winners, London Media Gateway and Colledia – with our own existing media capabilities.”
“This is exciting news for our staff and our customers,” said Adrian Corcoran, managing director of BBC Technology. “Being part of a large, global organisation gives us the resources, opportunities and investment that just weren’t available as part of the BBC, whose focus quite rightly is content not technology investment.”
(GB)