this ppt tells the major event happened in the television industry, i.e. outsourcing at bbc

1. IT
OUTSOURCING
AT BBC
AU G U S T I N P S
2 0 C O 2 A 8 3 9 1
I T F O R M A N AG E RS

2. CONTENTS
1. INTRODUCTION ABOUT THE COMPANY
2. TIMELINE
3. WHY OUTSOURCING?- REASONS AND BENEFITS
4. BY OUTSOURCING
5. OUTSOURCING PROCESS
6. PHASE 1
7. PHASE 2
8. PHASE 3
9. APPROVAL OF THE PROPOSAL

3. INTRODUCTION TO THE COMPANY
• BBC is the national broadcaster of United Kingdom
• It is the world’s oldest broadcaster and also the largest by its number of employees i.e. 22,000 staffs.
• Operates under its agreement with the secretary of state for digital, culture, media and sport
• BBC were granted ROYAL CHARTER in the year of 1927
• Funded by the television license fee charged from every households in UK
• First broadcast in the year 1920
• BBC radio services started in the year 1927
• BBC started visual services in the year 1936
• Played a crucial role during and after world war
• At present, BBC is divided into
• BBC BROADCAST and BBC PRODUCTIONS
• BBC EARTH, BBC ONE, BBC MUSIC etc. are examples of BBC production

4. First broadcast of BBC BBC HEAD QUARTERS, UNITED KINGDOM BBC ROYAL CHARTER
TIMELINE
1920s 1930s 1940s 1950-90s 2000s 2010s
Started BBC
radio
broadcasting
Started BBC
television
services
Crucial role in
WW and post
war period
Revolution in
TV industry
Programs and
live sports
Started other
subsidiaries
and also HD
services
Digitalisation,
Online radio
services etc

5. WHY OUTSOUCING?
These are the main reasons behind and benefits for outsourcing BBC are:
 Cost saving- BBC could able to save almost 30-40 million pound every year
 Providing employment to almost 400 people
 Pressure from the UK government
 By outsourcing the gains generated could be invested in other areas of BBC
 This helps in new development and innovation in BBC
 Rapid change in the technology in this field

6. BY OUTSOURCING…
By outsourcing…
 Access to 800+servers and distribution networks
 Save the cost for acquiring 30000+ high end desktops and other related equipment's
 By outsourcing BBC could save the training expenses for almost 300 employees to these technology
BBC offered other profession to these 300+ employees within the company itself. Thus
unemployment didn’t take place. This helps the company not to loose their professional workers.
 By outsourcing BBC were able to acquire latest technology and keep up with the competition
 All these helped BBC to gain more revenues and reduce the pressure from the UK government
 These revenues were reinvested in the company specially in the production areas.

7. OUTSOURCING
PROCESS
INITIAL DEAL was:
Acquire BBC with staffs and also to access the BBC contracts
contracts with various clients
TERMS AND CONDITIONS are:
Provide the technology support for BBC for the next 10
years
Manage BBC’s global operations
Manage BBC’s websites and broadcast feeds which has
around 1.8 billion visitors/users each day.
Procure broadcasting technologies for 100+ BBC channels
and move towards digitalisation.

8. Phase 1
 Open for accepting proposals from different companies.
 70+ companies were interested in acquiring BBC
 These companies were sent out prequalifying
questionnaire
questionnaire to evaluate the bidding companies market
position, financial strength, their knowledge about the
broadcasting business and related technologies.

9. Phase 2
Evaluation and shortlisting
By the end of phase 1, 9 companies were shortlisted
Evaluation stage:
more information regarding their methods were enquired.
enquired.
cultural fit
best value for money in technology procurement and
commitment to technology innovation.
resource allocation, scale of operations and funding to
help BBC realize its dreams.

10. Phase 3
SELECTION
By the end of phase 2, 3 companies were shortlisted and
they were given a project named “leo”- a project for cost
reduction.
By evaluating how they handled the project BBC selected SBS
SBS as the winner.
Some of the main reasons for selecting SBS are:
Better understanding of the public service organisations
Hardcore engineering background
Vast resources available … etc.

11. GOVERNMENT APPROVAL
 On September 1,2004, the government have approved the contract with the SBS.
 On October 1st 2004, SBS was officially given charge over BBC

12. THANK YOU