BT has achieved a target of £1bn annual cost savings 18 months ahead of a 2023 deadline.
The telecoms company made the announcement to investors as it prepares to release half-year results on Thursday (4 November) and amid press speculation of a possible takeover.
“BT confirms that it has delivered on its £1bn of gross annualised cost savings 18 months ahead of the March 2023 target,” the company said.
BT would not provide any further comment on the achievement.
In April BT launched a new “procureco” in Dublin called BT Sourced with the aim to “challenge the traditional ways of buying goods and services by simplifying processes”.
The company said BT Sourced would manage a budget of €14.8bn.
Cyril Pourrat, CPO at BT and head of BT Sourced, said at the time: “BT Sourced will play a major role in BT’s transformation, drawing on the best technology and people to speed up and simplify the way we manage BT’s third-party spend worldwide.”
In a letter to suppliers in November 2020 discussing the procureco Pourrat said procurement would play a major role in helping achieve a target of £2bn savings by 2025.
“We plan to set up a new procurement company (or a procureco) which will operate as a standalone entity from the rest of the organisation and radically change our existing procurement capability,” he said.
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