British Broadcasting Corporation (BBC) has decided to join the outsourcing bandwagon. BBC is going to outsource accounting and financing services to India with a goal to save £200 million (in the next 10 years). That is a lot of money and money surely talks. BBC reported:
“The contract, which includes managing payroll and financial management, has been won by Xansa.
It will provide customer support services from the UK, but other roles from its Madras (Chennai) offices.
Savings will go towards the BBC's target of releasing £355m of savings to invest in programmes and services.
"The BBC is taking advantage of the significant savings of globalisation while maintaining the benefits of more local customer support," the corporation said.”
It is an irony that just 3 weeks ago, UK’s channel 4 broadcast a documentary about data theft from Indian call centers. The documentary caused serious controversy in UK about outsourcing to India. That time, I commented in this blog that outsourcing was an inevitable matter that British companies could not afford to go away from outsourcing. BBC has just proved it again. I wonder if BBC would start to outsource some of its media functions even in the coming days. May be, BBC bosses can think of outsourcing documentary making to India. Needless to say that many BBC workers are unhappy with matter.
After BBC who is next?
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As far as I know, outsourcing is done for administrative functions and not core competence. So BBC may not outsource its core function.
Posted by: Hiren | October 21, 2006 11:47 PM | Permalink to Comment