Siemens Joins Forces With The BBC
Siemens Business Services will provide technology services to the BBC for next 10 years.
Siemens Business Services has announced that it has signed a deal worth almost £2 billion over 10 years to deliver technology services to the BBC. As part of the groundbreaking deal, Siemens has acquired BBC Technology, a commercial subsidiary of the Corporation and will re-name it Siemens Business Services Media Holdings Ltd.
The two-part deal covering both outsourcing contract and acquisition – the first of its kind in the media industry – means Siemens Business Services is well-positioned to achieve its strong growth aspirations in the media and broadcast marketplace. Siemens Business Services will expand services already delivered by BBC Technology and enable further expansion in the external market.
Following final approvals from the UK government's Department for Culture, Media and Sport and the BBC's governors, the contract sees continuity of service to the BBC across IT infrastructure, desktop and telephony, channel platform and distribution, facility design and build, broadcast system implementation, project management, consulting, hosting www.bbc.co.uk and applications management. Siemens will enhance these services to meet the BBC's technology vision over the next 10 years. The BBC expects to save around £30m per annum over the life of the contract.
“Siemens has demonstrated its ability and commitment to invest in technology services and innovation that will help us revolutionise the use of technology in making and distributing programmes,” commented John Varney, chief technology officer for the BBC and lead on the deal. “At the heart of this agreement is the need to deliver cost savings and release the value of BBC Technology.”
“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.”
Effective from 1 October 2004, Siemens will establish a business dedicated to the global media and broadcast industry. 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 Tom 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.”
In addition to running the BBC's global IT infrastructure, BBC Technology is involved in many other innovative projects at the Corporation, including Creative Archive, broadband coverage of the Olympics 2004, and the production modernisation projects underway in BBC News and BBC Natural History Unit. The company is also undertaking pioneering work with other media organisations such as ESPN and DirecTV in the US, and Discovery Networks and Hutchison 3G in Europe.
“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.”
About the deal
The BBC's move to procure a new technology contract followed an internal strategic review of the Corporation's technology requirements. The review identified potential annual savings for the BBC of around £30m if its technology services were outsourced. A rigorous EU Procurement Process, which started in November 2003, has been followed and approvals were gained from the BBC's Executive Board, the BBC Governors, the Secretary of State for Culture, Media and Sport, and the European Commission under the terms of the EC Merger Regulation.
About Siemens Business Services
Siemens Business Services is part of the Siemens Information & Communications group, which generated revenues of €22bn globally in 2003. It is one of the world's largest IT and business services providers and following the BBC Technology acquisition employs over 6,000 staff in UK. Leveraging the technology and financial strengths of the Siemens Group, Siemens Business Services offers a wide portfolio of IT services, business media solutions and business services. From consulting through to design, build, support and operation, the company is able to translate today's most challenging business requirements into innovative and effective solutions. Siemens Business Services has considerable experience in IT and business process outsourcing, networking, large-scale installations and end-to-end systems maintenance.
About Siemens
Siemens is a global innovator in the information, communications and media industries. The company has 415,000 people working in 190 countries 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 was established in the United Kingdom 161 years ago. The company employs 18,102 people in the UK, including nearly 5,000 in the manufacturing sector. Siemens provides innovative, high-quality services and solutions to customers in a diverse range of industry sectors comprising: power, automation and control, information and communication, medical, transportation, lighting, and household. Siemens operates through a de-centralised structure, with its headquarters in Bracknell, Berkshire. The company's structure reflects that of its parent company, Siemens AG, headquartered in Munich, Germany. For more information, visit www.siemens.co.uk
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 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. Customers include: BBC News, BSkyB, DirecTV, ESPN Inc, Hutchison 3G, SABC and Scottish Enterprise. BBC Technology has 1400 staff and a turnover of £230m.
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