BBC in £85m outsourcing deal

The BBC has selected Xansa as its preferred supplier for its £85m finance and accounting services deal.

The deal, subject to signing the contract, will cost the BBC around £8.5m per year over the next 10 years - but generate savings of £20m per year, according to Auntie.

The BBC's financial and accounting services will be housed from a mix of locations in the UK and India, customer support services remaining in the UK.

BBC group finance director Zarin Patel said the move to India demonstrates the BBC is prepared to take bold and imaginative decisions to offer the licence-fee-payer value for money.

Xansa will provide purchasing and sales transaction processing, artist and contributor payments, financial management and project accounting, payroll and expenses services.

As prime contractor Xansa will also be working with Siemens Business Services to provide infrastructure, applications support and customer service facilities.

Xansa finance director Gordon Stuart said: "Like many organisations the BBC is becoming enlightened to the benefits outsourcing can bring and recognises now it's not something you should be scared of."

The BBC's finance and accounting services is currently run by EDS subsidiary Medas, which has housed Auntie's purse strings in Cardiff and Ealing since 1997.

The BBC said Xansa was selected from a shortlist of four companies, also including Capita, EDS, and Infosys BPO.

The deal is expected to be signed in November, with Xansa taking over responsibility for the service in July 2007.