After announcing a tentative agreement for its technology services and software division several months ago, the BBC has completed the procurement for a 10-year Technology Framework Contract (TFC) with Siemens Business Services, said to be worth about $2.5 billion. As part of the deal, Siemens Business Services has acquired BBC Technology, a commercial subsidiary of the BBC. Tom White, managing director, Siemens Business Services - BBC Technology, will head up the newly renamed Siemens Business Services Media Holdings.
The agreement, covering both the service contract and the acquisition of assets, will result in Siemens working closely with BBC Technology Direction, the department responsible for the BBC’s technology strategy and development, to deliver the technology services across the whole corporation. By selling off the technology division, the BBC expects to save about $37 million per year over the life of the contract.
The BBC received approval for the sale from the Secretary of State for Culture, Media and Sport, and its board of governors for both the procurement and the sale.
As part of the deal, Siemens Business Services will also provide the skills, expertise and investment to support the BBC’s technology ongoing strategy and industry vision.
For more information, visit www.sbs.siemens.co.uk.