Xchanging wins more BAE Systems Australia business

19 April 2011

19 April 2011 | Angeline Albert

BAE SystemsAustralia has extended its indirect procurement outsourcing arrangement with Xchanging.

The contract was originally signed in 2006 but will now continue for another three years until the end of 2013.

More than AUD$180 million (£115.9 million) of indirect spend will be managed under the deal. Spend categories include travel, facilities management, learning and development and marketing. Xchanging employees will continue to deliver these services from the headquarters of the defence company’s Australia operations in Adelaide.

David Gillard, director of commercial and procurement at BAE Systems Australia, said: “Our vision is to be Australia's strategic industry capability and sustainment provider across the defence and security domains. With Xchanging managing our indirect procurement, this enables us to focus more on our customers and our core activities and still achieve cost savings.”

Kerry Purcell, executive director of Asia Pacific at Xchanging, said the company was delighted with the extension.

As reported by SM, Xchanging forecast lower-than-expected profits for 2011 as a result of winning fewer contracts. Its forecast revenue in 2010 was £684 million but for 2011, its forecast fell to £648 million.

As part of a 2011 action plan, Xchanging expects to scrutinise poorly performing operations and transform its business by focusing on strong business areas. Last month executive chairman Nigel Rich said: “This will be a year of transition as we address and resolve clearly defined problems.” 

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