£2bn BBC IT outsourcing race hots up

The BBC has revealed a shortlist containing the major IT services companies in the bidding for its £2bn 10-year IT outsourcing contract.

The BBC put out an initial tender document in December and from 70 responses the shortlist now includes Accenture, Capita, CSC, EDS, Fujitsu, HP, IBM, and Logica. A BBC Technology spokeswoman said one other company that does not wish to be named is also on the list.

By the end of April, the list will be narrowed down "probably to three" suppliers, the spokeswoman told silicon.com. "Then by the end of September, we hope to have chosen someone," she said.

An internal review of BBC Technology, which employs 1,400 staff, identified potential annual savings for the BBC of at least £20m if the services were outsourced. The winning bidder will buy BBC Technology and take over a range of services including: IT hardware, systems and applications for 25,000 users; telephony; consulting; project services and broadcast system services to the BBC's infrastructure.

The outsourcing move is likely to involve the transfer of large numbers of IT staff, and the BBC said unions will be consulted throughout the process.

John Varney, CTO of the BBC, said in a statement that the next stage of evaluation will not be just about technology expertise but also about "culture and fit" with the BBC. "This is a crucial part of our negotiations," he said.