We use cookies to provide you with a better experience. If you continue to use this site, we'll assume you're happy with this. Alternatively, click here to find out how to manage these cookies

hide cookie message
78,639 News Articles

BAE Systems signs procurement services deal

Defence firm inks contract with Xchanging

BAE Systems has signed a new contract with outsourcer Xchanging for procurement services.

Earlier this month, BAE replaced the outsourcer with Logica on another contract, for HR business processes.

The new three year contract for procurement will follow the end of the current UK deal with Xchanging at the end of 2012, but the outsourcer admits it will "have a lower margin than the existing contract".

TechMarketView analyst John O'Brien said of the deal: "It has something of a 'consolation prize' feel to it. Xchanging lost out on the bigger prize, the renewal of its HR BPO contract with BAE to rival Logica earlier this month."

That other deal was worth £18 million per year to Xchanging, although it only made a modest five percent margin, said O'Brien. Renewals "can come at a high price" to outsourcers, he said.


IDG UK Sites

Nokia replaces budget Lumia 520 with 530: Release date, price and specs

IDG UK Sites

Everything you need to know about Apple's iPhone Camera in iOS 8

IDG UK Sites

Why you shouldn't trust password managers

IDG UK Sites

How to make an 'Apple iWatch' using an iPod nano and a 3D printer