BP is outsourcing its telecommunications infrastructure in a multi-million pound deal, with the aim of reducing costs by up to £1bn in the current financial year.

The energy company signed a five-year deal with T-Systems this week, which will see the IT services arm of Deutsche Telekom take over the management of its voice and data communications infrastructure, and manage BP’s contracts with external suppliers.

Meanwhile, BP has signed a parallel deal with Siemens Enterprise Communications, which will provide managed voice and conference services.

The twin deals come as yet another signal that outsourcing activity is returning after a slow year in the industry, according to informationage.com