For the first time in its history the BBC has outsourced work abroad after a deal in which workers in India will deal with the corporation's finances.

It has signed a £85m contract - to process its expenses and pay production staff and performers - to outsourcing company Xansa. Although the BBC claims that the 10-year contract with Xansa will save about £200m, unions said they had security concerns over the payroll details of the corporation's 26,000 staff being sent abroad.

The BBC said the deal would contribute to its target of releasing £355m of savings to invest in programmes.