Xchanging (XCH), a business process and technology services provider, has won a renewal of its contract with BAE Systems to provide procurement services.
BAE has played hard ball though; Xchanging admits the new, three year agreement will have a lower margin than the existing contract.
Despite the drop in margin XCH had risen 1.2% by 10:22, continuing gains of 63% made over the last 12 months.
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Commenting on the new contract, Xchanging's Chief Executive, Ken Lever, said: "We have an extensive relationship with BAE Systems across three continents and this new contract will also support our wider relationship with this valued customer."
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