September 01, 2010
Top Stories
CAPGEMINI ACUIRES MAJORITY STAKE IN LARGEST BRAZILIAN IT FIRM...Capgemini is acquiring a 55% interest in CPM Braxis, the leading Brazilian IT services company. With a client base of major Brazilian and international companies, particularly in the financial sector, CPM Braxis expects to record 2010 revenues of around BRL 1 billion (450 million pounds). With over 5,500 employees, CPM Braxis boasts a diversified business portfolio focused on Application Outsourcing and Enterprise Application Services, and Infrastructure Integration and Infrastructure Services, the majority of which is delivered through multi-year contracts. CPM Braxis serves over 200 clients, and is especially strong in the financial sector. Its biggest client, major Brazilian bank Bradesco, was also its biggest shareholder prior to the transaction.
Brazil represents 47% of the Latin American IT services market, valued at $23 billion. Driven by a booming economy, the Brazilian IT services market has enjoyed the highest growth rate in the region for the past five years, and yearly growth should exceed 10% until 2014.
ACCENTURE GETS $160 MILLION BPO EXTENSION FROM ETS...Educational Testing Service (ETS), the leading provider of education assessments and psychometric research, has awarded Accenture a seven-year, $160M contract extension to continue managing its end-to-end supply chain, under a business process outsourcing (BPO) agreement. The contract was signed in May 2010. Under the agreement, Accenture will continue to manage all aspects of ETS' supply chain, including the printing, publishing, warehousing, distribution, tracking and shipping of tests and test materials to more than 10 million test takers in 160 countries every year.
UNISYS SELLS UK INSURANCE BUSINESS...Unisys Corporation has sold Unisys Insurance Services Limited (UISL) to Diligenta Limited, a subsidiary of Tata Consultancy Services Limited. UISL, which is headquartered in the UK and has operations in Liverpool and Bournemouth, provides business process outsourcing services to the UK life and pensions industry. Terms of the transaction were not disclosed.
MARKET RECOGNIZES GENPACT'S SEP METHODOLOGY...Leading industry analyst firm IDC has found Genpact's proprietary Smart Enterprise Processes (SEPsm) methodology--launched in late 2009--to be a unique and valuable way for companies to drive process effectiveness and achieve measurable business impact. SEP leverages best practices and proprietary benchmarking data to deliver proven results across industries and key business processes. The report by Mukesh Dialani, IDC's research manager, Worldwide BPO Services, examines how Genpact's SEP methodology addresses lack of optimal process management in the enterprise environment. "Genpact's unique IP enables it to test effectiveness of the clients' process by measuring performance at each step of the entire business process and applying best-in-class benchmarks from within and across industries," Dialani wrote.
New Business
BancTec, a global provider of advanced, high volume document and payment processing solutions and services, has been selected by Northrop Grumman to provide 13 high-speed, high-volume scanners--and all related scanner control software--for four Internal Revenue Service (IRS) corporate tax processing facilities and two test centers. As part of the multi-year, multi-million dollar contract, BancTec will also provide maintenance on data servers located in the IRS facilities.
The Wisconsin Department of Children and Families has renewed an eight-year, $30 million contract with Affiliated Computer Services, Inc. (ACS), A Xerox Company, to process child support payments. ACS will continue operating the state's child support payment processing operation, known as a State Disbursement Unit (SDU). ACS has run the SDU since 1998, providing services that include processing and disbursing payments, performing monthly bank reconciliations and managing a customer service call center. Beginning in 2011, ACS will also administer the state's program that offers child support payments on a debit card, providing recipients faster and more convenient access to their funds on a card accepted at thousands of retailers and ATMs.
International News
Central Bank of India, one of the largest public sector banks in India and Wipro announced a five-year total outsourcing agreement to provide state-of-the-art, technology-driven, core banking solution for seven sponsored Regional Rural banks. One of them Uttar Bihar Gramin Bank is the biggest RRB in India and has a large presence in Bihar. The Centralized Core Banking Project is expected to facilitate efficient internal operations for the seven Regional Rural Banks by integrating 2000 sites which include branches, extension counters, satellite offices, Regional Offices, Head Offices and back offices in a phased manner. The solution would also offer alternate Delivery channels like Internet Banking and Mobile (including SMS Alerts) banking.
WNS (Holdings) Limited, a leading provider of global business process outsourcing services, announced a contract to deliver analytics and customer care services for IHG (InterContinental Hotels Group). Under this multi-year agreement, WNS will deliver customer care services in several languages including German, Italian, French and Spanish to IHG's entities across Europe. WNS is also providing a dedicated analytics team to support IHG's consumer marketing programs.
Diligenta, a leading business process outsourcing (BPO) provider in the UK and a subsidiary of Tata Consultancy Services (TCS), announced major business wins with The Phoenix Group and Old Mutual International following the transfer of Unisys Insurance Services Limited's (UISL) UK life and pensions services business to Diligenta. Diligenta's new contract with The Phoenix Group has been extended by an additional six years until 2018, and both contracts will generate £250 million in revenue for the company over that period, reinforcing Diligenta's position as one of the largest BPO providers in the UK.
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