Information Technology Outsourcing at BBC


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Case Details:

Case Code : ITSY051
Case Length : 13 Pages
Period : 2000-2005
Pub Date : 2005
Teaching Note :Not Available
Organization : BBC
Industry : Media/Broadcasting
Countries : UK

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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Excerpts

Selling BBCTL

In 2002, Varney joined as CTO of BBC. While he was reviewing BBC's technology requirements for the next five years, he realized that about £20 to £30 million could be saved each year, if the technology services were outsourced to a third party, instead of procuring from BBC Technology...

Selecting the Supplier

In November 2003, BBC initiated the process of selling BBCTL. As per the EUPP norms, any tender to supply goods and services worth more than £154,477 must be advertised in the OJEC's (Official Journal of the European Communities) website, declaring the bid open for all...

The Winner

In May 2004, Crawley wrote a letter to the new BBC Chair Michael Grade to review the company's decision to sell the BBCTL...

BBCTL under SBS Management

SBS was handed charge over BBCTL on October 01, 2004. However, for the first six months - until April 01, 2005, SBS operated under the TSA that BBCTL had signed with the BBC. Traditionally, the BBC operated close to technology developers and programmers...

Looking Ahead

As a part of its future plans, SBS planned to create a global center for competency aimed at imparting training to its 5,000 staff worldwide for the future broadcast-based projects. According to Varney, the untapped global market for broadcasting technology services ranged between £25 billion and £100 billion annually in the coming years. Apart from providing IT services to BBCTL's clients, SBS planned a novel project called Creative Archive Project aimed at providing coverage of sporting events using broadband technology and modernization of the production facilities at BBC News and the BBC Natural History unit...

Exhibits

Exhibit I: Siemens AG
Exhibit II: Technology Framework Contract

  

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