Airport operator BAA is expected to make a decision soon on whether Siemens or Capgemini will deliver its IT.

Since August, BAA, which operates London airports Heathrow and Stansted, has been in negotiations with the two outsourcers, as part of plans to achieve service and cost efficiencies.

In the company’s latest investor report, BAA said: “A decision on the outcome of the outsourcing review is expected to occur shortly.”

Although the report did not name the suppliers, a spokesperson for BAA told Computerworld UK that talks were being held with Siemens and Capgemini, with a view to choose one of them.

BAA has mentioned in its two previous investor reports, which are published every six months, that it is considering outsourcing its IT service delivery in order to improve service delivery and value.

In its investor report out today, BAA forecast that its 2011 operating costs would be up £73 million compared with 2010, at £1,177 million. This represents a range of costs, including the one-off cost of various IT, operational and commercial initiatives that the airport operator expects will “deliver benefits beyond 2011”.

Earlier this year, BAA announced plans to invest £121 million in overhauling IT at Heathrow Airport over the next three years. Under the IT programme, BAA plans to deliver a number of sub-programmes, which include an implementation of the Oracle E-Business Suite and delivering a real-time airport integrated management system for Heathrow Airport.  

Meanwhile, yesterday Siemens announced the sale of its IT Services and Solutions business to Atos Origin for £721 million.