£2bn BBC contract going to Siemens

Siemens Business Services has been selected by the BBC as the corporation's main outsourcing vehicle and the owner of BBC Technology.

The 10-year contract is worth up to £2bn and bound to be a disappointment to Accenture, the other IT services company left on the shortlist after CSC's recent withdrawal.

There were originally eight contenders for the Technology Framework Contract but that number was cut down to three in May.

The BBC said in a statement that it chose Siemens Business Services because of its commitment to invest in technology services and innovation, all with "significant projected annual cost savings".

The Siemens deal still has to be rubber-stamped by the BBC Governors, the Secretary of State for Culture, Media and Sport, and the EC.

Negotiations with broadcasting union BECTU are ongoing, the BBC said.

The BBC operations to be outsourced employ around 1,500 staff and last year turned over £220m. They cover areas such as IT, telecoms, consulting, project services and broadcast system services.

Finalisation of the deal is expected this autumn.