BT signs £128m BPO deal with Xansa

Telecoms giant BT has renewed its business process outsourcing contract with Xansa, the outsourcing and technology company, to last another six years to 2014.

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Telecoms giant BT has renewed its business process outsourcing contract with Xansa, the outsourcing and technology company, to last another six years to 2014.

Under the deal, Xansa will continue to manage BT’s UK operations for finance and accounting (F&A), transaction processing, ledger and payroll services. Xansa, which has extensive offshore capabilities in India, as well as centres in the UK, has been providing BT with application management services for the past 20 years.

BT claimed Xansa’s integrated delivery would provide cost-effective and efficient services. Andrew Kemp, group director of reporting, planning and analysis at BT, said: “Xansa has worked with BT for many years. Not only does its outsourcing service provide us with transaction process expertise, but the company has an in-depth understanding of our business and is committed to helping us deliver our key outcomes.”

He added that Xansa would deliver “the flexibility to achieve business change through investment in governance and service management”.

Samad Masood, analyst at Ovum, said that the deal was an indication of the growing confidence in F&A services in Europe.

He added: "The next step for Xansa is to secure the renewal for its IT applications work with BT. No announcement has been made yet, but given BT was Xansa's first applications management client, and the relationship has lasted 20 years, we'd be very surprised if Xansa lost this piece of work.

"It has the relationship, the expertise, and the offshore resources to be pretty unstoppable in this account."

Xansa claims to be the largest European provider of F&A. Last month, it expanded after agreeing to a takeover by French group Steria for £472m.

Separately, in February BT outsourced management of its worldwide IT contractor workforce to the Manpower group of companies. It also announced it was spending £14m over the next seven years on a new south London data centre to strengthen its hosting and management services.

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