9 March 2007 | Paul Snell
Outsourcing firm Xchanging has bought out BAE Systems from their procurement joint venture in a deal worth £57 million.
BAE set up the "enterprise partnership" with Xchanging in 2001, which meant Xchanging provided HR and some procurement services for BAE. The procurement function mainly covered "back-office" items such as fleet, mobile phones and stationery.
In addition to making savings through improved efficiency, both companies received a dividend of profits generated by the partnership. Profits were achieved by providing the same HR and procurement services to third party companies.
Mike Turner, chief executive of BAE systems, said: "We constantly look for innovation and value in the way we operate and in the partnerships we form. We are delighted the partnerships with Xchanging have been so successful."