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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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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Introduction Contd...
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BCTL provided IT, broadcast systems and telecom services to
the BBC channels and other channels like ESPN and had around 1,400 employees.
BBCTL was renamed Siemens Business Services Media Holdings and all the employees
were transferred to the new entity.
The contract was signed after an intensive review of the benefits that could
accrue to BBC. The BBC expected to save around £30m per year during the
contractual period of ten years. According to John Varney (Varney), Chief
Technology Officer (CTO) of BBC, "These potential savings were so high that we
couldn't ignore it, we had to take it very seriously."6
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However, BECTU and some high cadre technology
division employees opposed the deal saying that it would result
in a number of job losses and also questioned the ability of SBS
to provide high quality IT services throughout the ten year
contract period.
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According to a member of BECTU, "We don't want to be
swallowed up by a big IT company like IBM or EDS."7
Background Note
On October 18, 1922, a group of British and American
electrical companies doing business in the UK combined
to form the British Broadcasting Company Limited, to
provide radio transmission services.
The first program
was aired on November 14, 1922. The company's role was
defined as "to bring the best of everything to the
greatest number of homes."... |
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