Eight bidders vie for BBC Technology

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The Independent Online

IBM, Hewlett Packard and Logica are among eight companies that have made it through to the second round of bidding for BBC Technology, the division which supports the entire corporation's technology infrastructure.

BBC Technology is thought to be worth at least £100m and could fetch up to £150m. It comes with a 10-year contract to supply the BBC's technology needs, worth £2bn. The BBC said that by outsourcing its technology requirements it could save at least £20m although this could rise, depending on who wins the bidding. BBC Technology supplies the BBC with all its broadcast engineering, its satellite equipment and the corporation's desk top infrastructure.

It is part of the BBC's Ventures Group, set up under former director-general Greg Dyke, to commercially exploit the BBC's technological expertise. The group was asked to generate an extra £300m for the BBC's coffers. However, Roger Flynn, the group's chief executive, has achieved the £300m target early and with the sale of the BBC Technology division he is set to exceed Mr Dyke's target by at least £100m. As a result he has announced his intention to leave the BBC.

The list of second round bidders for BBC Technology published by the corporation is: CSC, Fujitsu, EDS, Capita, Accenture, IBM, Logica and HP.