Xchanging wins procurement services contract from BAE

Defence, security and aerospace company BAE Systems has awarded a seven-year procurement services contract to Xchanging, the business process and technology services provider.

As part of this arrangement, Xchanging will provide sourcing and supply base management services for $800m (£485.5m) of BAE Systems’ annual indirect procurement spend across most categories of indirect goods and services, including information technology and telecommunications; transportation; contract labour; industrial supplies and services; utilities; some Professional Services; and others.

Xchanging will also provide procurement management activities related to reporting, supplier and contract management.

The contract runs through July 2018, with an option to extend for an additional three years by mutual agreement.