CSC out of the race for BBC Technology

IT services firm CSC is to drop out of the race to buy BBC Technology and win the 10-year, £2bn contract to run technology services for the broadcaster.

BBC Technology said that, following in-depth negotiations over recent weeks and a "deeper understanding" of the BBC's and CSC's objectives and expectations, both sides had decided "it would not be appropriate for CSC to continue negotiations".

In a statement, CSC said: "This decision was judged to be in the best interests of both parties. CSC looks forward to working with the BBC in the future."

A BBC spokesperson added: "There were expectations from the BBC of what the deal entailed and expectations from CSC about what the deal would bring. And it was felt at the end of the day that CSC couldn't meet those expectations."

The news is the latest development in the BBC's technology sell-off project launched last year to support central cost-saving plans while giving the corporation full access to emerging technologies and skills.

CSC was among the final three bidders in the race for the 10-year, £2bn contract, which also involves the transfer of some 1,400 BBC Technology staff.

This leaves only Accenture and Siemens still in the running, as they prepare proposals for the final review process in July.

The ongoing negotiations with the remaining two outsourcers will continue unaffected until the final winner is announced in autumn of this year, the BBC said.