PracticePeople In PracticeXansa to take on accounting work at BT

Xansa to take on accounting work at BT

British Telecommunications has announced plans to outsource key accounting and financial services work to business services group Xansa (formerly known as FI Group).

The move aimed at cutting costs at BT and allowing to focus on its core telecom operations.

The deal, which BT hopes to finalise by year-end, would see Xansa manage general ledger, sales ledger, accounts payable, business expenses, audit processing and payroll functions and provide them to BT under a long-term service contract.

As part of the deal more than 500 BT staff would transfer to Xansa. Customer billing will remain an in-house BT finance function.

BT group finance director Philip Hampton said the relationship with Xansa would provide BT with the opportunity to ‘benefit from continuing improvements and best-in-class processes and systems’.

He added: ‘It provides both opportunities for cost savings for BT as well as excellent career prospects for the people who transfer. This builds on our strategy of focusing on BT’s core business.’

Xansa chairman Hilary Cropper said the company was ‘delighted’ with the proposed alliance, which represented a ‘natural and complementary extension to its 15 year relationship with BT’.

‘It will build on our existing capabilities and enhance significantly our offering in the growing area of IT-enabled business process management,’ Cropper remarked.

A spokesman for BT said Xansa had been selected in a competitive process involving other potential partners. It had been chosen because of its ‘track record, cultural fit and 15 years experience with BT’.

Investors responded positively to the announcement. BT shares climbed 17p, to 359p in early trading on Thursday, while Xansa shares gained 19p to 238p.

Links

BT group online

Xansa online

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