Oil company BP is to outsource its telecommunications infrastructure as part of its bid to cut £1 billion of cost during the current financial year.

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

T-Systems said that it will move BP onto a simpler networking infrastructure, allowing it provide a better standard of service delivery.

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.