Xchanging has lost a £25 million per annum infrastructure servicing contract with the London Metal Exchange as the LME's new owners call time on a profitable eight-year relationship for the BPO provider.
Xchanging says that the provision of services under the current contract with the LME will end with effect from 1 May 2014. It says that discussions are ongoing over future business with the LME, albeit "on a substantially smaller scale than the current contract.
"The contract review reflects the change in ownership of the LME to the Hong Kong Exchanges and Clearing Ltd which completed in December 2012," states the firm in a terse update. "Xchanging understands that the decision to review the contract is due to strategic decisions taken by the LME's new owners and not in any way due to dissatisfaction with the service Xchanging provides."