BT awards €1.14b outsourcing contract

BT has awarded construction outsourcing giant Carillion and its JV partner Telent with a €1.15 billion support services contract for Openreach.

The Carillion-Telent joint venture signed a letter of intent with Openreach for a future contract to provide nationwide support services for Openreach, BT’s local access network business. 
The outsourcing move forms part of BT’s strategy to reduce its capital and operating expenditure by €1.15 billion during 2009-10.
The carrier announced capex savings of €413 million during its Q1 results. It also plans to eliminate 15,000 permanent and contract positions.

Carillion said in a statement it expects the contract will be agreed and signed within the next two months.

Under the contract the joint venture will deliver services across Openreach’s five regions - London and Home Counties, the South East, Midlands, Wales and West, the North, and Scotland.
Services to be provided include complex support and network installation services, asset management and maintenance, together with other associated works. 
Carillion has been providing integrated facilities management services for BT’s UK estate since 2001. Telent was formerly owned by GEC Marconi and is now is owned by the Pension Corporation.

“The Carillion-Telent joint venture has outstanding skills and resources and we look forward to working with Openreach to support them in delivering a first-class service to their customers,” said chief executive John McDonough.