Information Technology Outsourcing at BBC (Page 2)

Abstract

The case gives a detailed account of the sale of BBC Technology Limited, the technology division of British Broadcasting Corporation (BBC) to Siemens Business Services (SBS) and Information Technology (IT) outsourcing contract between BBC and SBS. The case puts forth the reasons that prompted the broadcasting giant to sell its technology division and the benefits that could accrue to it as a result of the sell-off. It focuses on the obstacles that BBC faced in outsourcing and also gives the details of the contract. The case also describes the selection process adopted by BBC to choose its technology provider.

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In 1927, the company’s name was changed to the British Broadcasting Corporation and it was granted a Royal Charter . The Charter defined the BBC’s objectives, powers and obligations. The BBC was answerable to the Board of Governors, who acted as trustees and ensured that the BBC was accountable for its work to public while maintaining its independence in reporting news.

The Third Programme broadcasted cultural programs such as concerts, opera, drama, talks and features.

To listen to the BBC radio programs and to view television programs in Britain, people were required to have a license. The BBC earned its revenues through licensing fees and advertising revenues. Till the early 1950s, radio dominated television.

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

Issues

The case is designed to help students to:

• Understand the rationale behind broadcasters outsourcing their technology requirements.

• Study and analyze the problems that the company could face while outsourcing.

• Understand the selection procedure that companies adopt to choose the technology service providers.

• Study the role of Chief Technology Officer in an organization in devising and implementing IT outsourcing contracts.

• Critically examine the strategic impact of outsourcing IT requirements in the organization

British Broadcasting Corporation, Siemens Business Services, IT Outsourcing, IT Vendor Selection, Evaluating IT Vendors, BBC’s Technology Framework Contract, Technology Innovations, Economies of Scale, Outsourcing Media Contracts, Media Lifecycle Management, Content Management Solutions, Technical Services Agreement and British Broadcasting Corporation.

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.