News
BAE SYSTEMS and Xchanging Sign Major HR Procurement Services Deal
01 Oct 2001
In a major announcement for the UK procurement services market, BAE SYSTEMS is assigning responsibility for certain categories of its indirect procurement spend in the United Kingdom, estimated to be worth approx. £80 million per annum, to a 50 / 50 jointly owned company, to be set up between BAE SYSTEMS and Xchanging. Xchanging plans to build a major global procurement services business from this platform with operational control of this new company.
This new jointly owned company will manage the entire supply chain for BAE SYSTEMS UK subsidiaries in certain HR related services such as car fleet, non technical contract labour, recruitment, healthcare and specific fields of training. Additional areas of service provision could add to the overall value of the services contract over its ten-year life.
Rod Leggetter, Group Director Procurement and IT of BAE SYSTEMS said: "Our aim is to be the benchmark with HR procurement services which improve service levels and add value to our businesses. This second JV with Xchanging will enable BAE SYSTEMS to achieve these goals."
Chief Executive of Xchanging, David Andrews said: "Our vision is for the procurement services is to become the benchmark supply chain service provider in indirect spend categories based on its competitive prices and high levels of service. This latest enterprise gives Xchanging clear leadership in opening up the high-value end of the business process outsourcing market in the UK, and gives us another major hub from which to expand."