BT considers outsourcing deal

British Telecom said today it is in talks to outsource its accounting and financial services operation as part of an ongoing restructuring programme.

The telecoms giant hopes to strike a deal that would see 500 staff transfer to Xansa, a Hemel Hempstead-based business consulting and IT services company.

A seven-year agreement should be finalised by the end of the year, from when Xansa would take charge of BT’s key accounting services.

Customer billing would remain within the slimmed-down telecoms group.

The move is the latest BT has made to focus on its core telecoms business and reduce its debt mountain.

The group is floating off its mobile phone division and has already sold its Yellow Pages directory business, overseas interests and its property portfolio.

It has also considered outsourcing or finding a partner to help run its fleet of vans.

Philip Hampton, BT’s finance director, said an agreement with Xansa meant the group would benefit from ‘‘best-in-class processes and systems’’.

He added: ‘‘It provides both opportunities for cost savings for BT as well as excellent career prospects for the people who transfer.’’

A spokesman for BT said the 500 staff employed in its accounting and financial services division were based in Birmingham and London.

It was too early to give an estimate of the potential cost savings from the agreement, he added.

Xansa chairman Hilary Cropper said the deal would provide a ‘‘foundation client’’ for its new business process management division.

She added: ‘‘Philip Hampton and I have shaken hands on the fact that we do intend to take over their key accounting practices but it is not yet a done deal.

‘‘They have a process to go through of consolidation with their staff but we are hopeful it will be signed around Christmas time.’’

The cost saving to BT would be ‘‘substantial’’, she said.

Xansa hopes its business process management service would generate £150m of revenue a year in three years’ time.