XCH.L Regulatory News (XCH)

17 August 2011

XCHANGING AND BAE SYSTEMS INC

 SIGN SEVEN YEAR USA PROCUREMENT OUTSOURCING CONTRACT

Xchanging, the business process and technology services provider, has won a seven year procurement services contract in the USA with BAE Systems, Inc., a leading defence, security and aerospace company. The contract commences on 1 August 2011 and runs to 31 July 2018, with an option to extend for an additional three years by mutual agreement. It is expected to generate revenues in excess of US$150 million over the life of the contract.

Xchanging will provide sourcing and supply base management services for US$800m of BAE Systems, Inc.'s annual indirect procurement spend across many categories of indirect goods and services including Information Technology and Telecommunications, Transportation, Industrial Supplies & Services, Contract Labor, some Professional Services and others. Xchanging will also provide procurement management activities around reporting, supplier and contract management.

Xchanging helps customers around the world drive sustainable improvement in supplier costs and process efficiencies associated with the procurement process. The contract reflects Xchanging's position in the global procurement services market and firmly establishes its position in the Americas region.

"We consistently seek opportunities to reduce cost, improve efficiency and increase speed to market," said Dennis Bent, Vice President Strategic Sourcing, BAE Systems, Inc. "Outsourcing indirect procurement to Xchanging enables us to access top procurement talent supported by a proven approach to sourcing that will provide value to our business."

Ken Lever, Xchanging CEO commented, "We are delighted to extend our relationship with an existing customer of Xchanging. This contract not only enables us to deliver value to BAE Systems, Inc, it also acts as a springboard for Xchanging Procurement Services in the fastest growing procurement outsourcing market globally."

ENQUIRIES:

About Xchanging

Xchanging is a business process and technology service provider specialising in Financial Services, Insurance Services, Technology and Procurement, with processing skills and capabilities applicable to other vertical industry and market sectors.

www.xchanging.com 

Cautionary Statement: 

This announcement contains forward-looking statements that are based on current expectations or beliefs, as well as assumptions about future events. These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. Forward-looking statements often use words such as anticipate, target, expect, estimate, intend, plan, goal, believe, will, may, should, would, could, is confident, or other words of similar meaning. Undue reliance should not be placed on any such statements because they speak only as at the date of this document and, by their very nature, they are subject to known and unknown risks and uncertainties and can be affected by other factors that could cause actual results, and Xchanging's plans and objectives, to differ materially from those expressed or implied in the forward-looking statements.

There are a number of factors which could cause actual results to differ materially from those expressed or implied in forward-looking statements. Among the factors that could cause actual results to differ materially from those described in the forward-looking statements are; increased competition, the loss of or damage to one or more key customer relationships, changes to customer ordering patterns, delays in obtaining customer approval or price level changes, the failure of one or more key suppliers, the outcome of business or industry restructuring, the outcome of any litigation, changes in economic conditions, currency fluctuations, changes in interest and tax rates, changes in raw material or energy market prices, changes in laws, regulations or regulatory policies, developments in legal or public policy doctrines, technological developments, the failure to retain key management, or the key timing and success of future acquisition opportunities or major investment projects.