20 January 2006 | SM reporters
The BBC has shortlisted three suppliers for an outsourcing contract to provide HR services from later this year.
Accenture, Capita, and Xchanging are the remaining three, after Convergys, Excellerate HRO, Hewitt, IBM and Northgate were knocked out of the competition.
All eight suppliers had gone through to the second phase of the tendering process, which is being carried out jointly by HR and procurement staff at the corporation.
The decision to outsource much of the function follows an internal review, Value for Money, announced by director-general Mark Thompson.
The corporation hopes to save around £355 million a year by 2008, an estimated £93 million of which is to be made through more efficient procurement and £68 million from redundancies and increased outsourcing of jobs.
The BBC's 900-strong HR department is to be reduced to 450 as part of the changes, with 260 posts outsourced and 180 redundancies.
The corporation is looking for a supplier or suppliers to undertake recruitment, remuneration, development, re-location, HR administration, occupational health and disability access services.
The winner of the contract should be announced in mid-February, with work due to begin in the spring.