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BBC must be 'more vigilant' over outsourcing deals

Public Accounts Committee criticizes BBC deal with Siemens over a major digital technology project

The BBC's decision to outsource a major digital technology project to Siemens has been criticised by a public spending watchdog, which said the corporation needed to be "more vigilant" with licence fee-payers' money.

The BBC's Digital Media Initiative aimed to make it easier for journalists and programme staff to handle audio and video material. The contract was initially given to Siemens but later cancelled when it was not delivered on time. It was forecast to cost £81.7m but this has now grown to £133.6m.

The Public Accounts Committee said in a report published today that, with hindsight, the BBC should not have awarded the deal to Siemens without testing it against other suppliers.

Read more at Press Gazette