BT has signed a five-year agreement with BAE Systems to deliver secure connectivity across the defence contractor's global operations, as military firms increase investment in digital infrastructure. The contract will see BT support BAE's network across 40 countries, with an option to extend the partnership by an additional three years.
Deal Details and Strategic Importance
The deal comes as BAE, Europe's largest defence contractor, benefits from rising defence spending and a record order backlog amid heightened geopolitical tensions. BT said the agreement would help BAE staff access digital tools more flexibly, including in specialist and sensitive environments.
Chris Sims, chief commercial officer at BT, stated: "Networks are mission-critical to BAE Systems. This partnership is about getting those foundations exactly right." He added that BT's secure networks would give BAE "a platform they can depend on to support the UK's security, now and into the future."
Digital Transformation in Defence
The contract follows BT's launch of a sovereign platform designed for firms handling sensitive data or operating in regulated sectors like defence or critical national infrastructure. BAE is also extending its partnership with DXC Technology, which will provide its AI cloud platform to over 110,000 employees. Together, these deals reflect a wider push by the defence sector to modernise ageing systems and secure data across global operations.
Dr Mary Haigh, director of digital delivery at BAE Systems, said the firm was shifting its digital ecosystem to create a "secure, insight-led digitally enabled working environment." She added: "Our partners will play a critical role by unlocking greater agility, pace and innovation across our business."
BAE's Financial Performance
BAE reported record sales of £30.7 billion earlier this year, with profit rising and its order backlog reaching £83.6 billion. The firm has been boosted by increased defence budgets in Europe and the US, as governments respond to rising security threats.
