BAE Systems extends procurement sourcing contract with Xchanging

BAE Systems Australia has extended its indirect procurement outsourcing contract with global processor, Xchanging.

The original contract signed in 2006 will continue for another three years until the end of 2013.

More than $180 million of indirect spend will be managed under the deal. 

Spend categories include travel, facilities management, learning and development and marketing. Xchanging employees will continue to deliver these services from the headquarters of the defence company’s Australia operations in Adelaide.

 “Our vision is to be Australia's strategic industry capability and sustainment provider across the defence and security domains,” David Gillard, director of commercial and procurement at BAE Systems Australia, said.

“With Xchanging managing our indirect procurement, this enables us to focus more on our customers and our core activities and still achieve cost savings,” Gillard said. 

Kerry Purcell, executive director of Asia Pacific at Xchanging, said the company was delighted with the extension.

As part of a 2011 action plan, Xchanging expects to scrutinise poorly performing operations and transform its business by focusing on strong business areas.

Read more here.