Xchanging, a business process services company, has been appointed by BAE Systems to source and manage the supply of technical contract labour to the company in the UK.
The new contract will run for seven years and is an extension to Xchanging’s existing partnership with BAE Systems. Xchanging started working on procurement with BAE Systems in 2001, creating a ten year partnership, in the biggest deal of its kind in the UK to deliver savings and better service. The operation took over a number of BAE Systems procurement operations, including recruitment, training, healthcare, non-technical contract staffing and management of its car fleet.
The £70 million per annum extension will see Xchanging sourcing and managing the recruitment of specialist, contract technicians both for on-site appointments, where the technicians will work in BAE Systems establishments and off-site appointments, operating from the suppliers’ own premises.
Jim Robinson, BAE Systems Indirect Procurement Director, said, “This is a natural and logical extension to the relationship which builds on the skills and knowledge developed in other areas of resource management. A unique element of Xchanging’s approach is the value they bring in streamlining process and enhancing supply chain performance. In this respect their impact is much wider than merely saving money.”
David Andrews, Chief Executive Officer of Xchanging, said, “This is an important contract because it reinforces that the Xchanging partnership approach really does work. There is nothing to touch it in the market today.”
David Rich-Jones, Head of Procurement Services at Xchanging, said, “We have developed a unique procurement proposition, one that we have refined with BAE Systems. We get real savings to the bottom-line quickly and we sustain and improve them long-term – that’s our business.”