March 10, 2010
Top Stories
HP REVISES FIRST QUARTER EARNINGS ON LITIGATION CONCERNS...HP has revised its previously announced financial results for its first fiscal quarter ended Jan. 31, 2010, following developments in litigation involving Electronic Data Systems Corporation (EDS), a company that HP acquired in August 2008. The revisions reflect an increase in the amount of the contingency reserve previously established in connection with the litigation and resulted in a negative impact on HP's first quarter net earnings of approximately $73 million, or $0.03 per diluted share. EDS and one of EDS's subsidiaries are defendants in litigation filed in the United Kingdom by Sky Subscribers Services Limited and British Sky Broadcasting Limited (BSkyB) in 2004 relating to a customer relationship management project that was awarded to EDS in 2000.
CONVERGYS SELLS HR LINE OF BUSINESS...Convergys Corporation has signed a definitive agreement to sell its Human Resources Management (HRM) line of business to NorthgateArinso, a leading global human resources software & services provider, for approximately $85 million in cash at closing and $15 million in cash over three years. With its world headquarters in the United Kingdom, NorthgateArinso has offices in 31 countries on five continents delivering services in over 70 countries through a network of eight Service Delivery Centers. NorthgateArinso's approximately 5,000 staff members serve more than 20 percent of the FORTUNE Global 500 companies, and it is one of the five largest HR service providers in the world.
INTELENET ACQUIRES UK BACK OFFICE GROUP...Intelenet, an Indian BPO firm controlled by the US private equity group Blackstone, has acquired the back office operations of the UK transport company for £45m. Intelenet will now be responsible for customer management, ticket issuing and back-office processing across rail franchises including FirstCapitalConnect, First ScotRail and First Great Western. The aim to increase FirstInfo’s UK employees from 300 up to 2,000 in two years.
PATNI CLAIMS HR AWARD...Patni Computer Systems received the award for "Innovative Retention Strategies" at the World HRD Congress 2010. The prestigious global HRD event, which honors organizational transformation and development, saw a congregation of 189 companies from over 25 countries.
New Business
R.R. Donnelley & Sons Company has been awarded a $375 million multiyear agreement to provide college textbook printing, graphic management services, packaging, on demand printing and other services to Cengage Learning. Cengage Learning will draw on RR Donnelley's domestic and international capabilities as it helps the publisher deliver highly-customized learning solutions for colleges, universities, instructors, students, libraries and other users under a portfolio of well known company and imprint brands that include Brooks/Cole, Course Technology, Delmar, Gale, Heinle, Schirmer, South-Western and Wadsworth.
Affiliated Computer Services, Inc. (ACS), a Xerox company, has been awarded a competitively bid contract to provide parking citation processing and collections services for the Los Angeles County Sheriff's Department (LASD). The five-and-a-half year contract extends one of ACS' longest client relationships, now in its 27th year. As part of the new contract, ACS is providing continued innovation to the department through updated technology, including handheld devices for Sheriff Parking Control Officers to issue citations, as well as a fleet of automated license plate recognition units.
International News
Wipro Technologies, the global IT services business of Wipro Limited has entered into a seven year strategic agreement with The Main Street America Group, a leading provider of commercial, personal and surety insurance products exclusively, sold through independent agents to individuals, families and small businesses in 24 US states. Main Street will engage with Wipro for applications development, maintenance and quality assurance using Wipro's CMMi Level 5 quality services.
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