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September 29, 2005
Top Stories
GECIS IS NOW GENPACT...One of the pioneers and major players of global outsourcing have taken a new name. Gecis Global is now Genpact. The company says its new name reflects both new name reflecting both its GE heritage and its outlook for the future. Genpact President & CEO Pramod Bhasin said the company expects to pass the $1 billion mark in annual revenues by 2007-2008 and have a global workforce of 30,000.
FAO OUTSOURCING REACHES RAPID GROWTH STAGE...The finance & accounting outsourcing (FAO) sector, which primarily serves the Global 500 marketplace, has reached the rapid growth stage, according to Everest Research Institute, which estimates total contract value currently at US$12 billion. In an in-depth report on the FAO sector between 1991, when the first FAO contracts were signed, and April 2005, Everest Research Institute analysts also found that 41 companies signed large, multi-process FAO contracts over the past 18 months, resulting in 58 percent market growth. Of the 108 multi-process FAO contracts signed since 1991, about 70 percent were signed in the past four years.
PAYCHEX ANNOUNCES RECORD INCOME...Paychex, Inc. announced record net income of $115.0 million, or $0.30 diluted earnings per share, for the three months ended August 31, 2005, a 31% increase over net income of $87.7 million, or $0.23 diluted earnings per share, for the same period last year. Total revenues were $403.7 million, a 17% increase over $345.0 million for the same period last year.
NEW COO FOR FISERV INTERACTIVE TECHNOLOGIES UNIT...Fiserv, Inc. said its Interactive Technologies business unit appointed Linda A. Weber chief operating officer. In her new role, Weber will initially focus on further integrating the Interactive Technologies Advantage Fee System software and complementary Fiserv solutions, significantly expanding the utility to clients.
SILICON VALLEY LOSING JOBS TO INDIA...About half of Silicon Valley’s outsourced jobs are winding up in India, with other Asian nations and China trailing behind in the jobs race, say area managers recently surveyed by a team of faculty at Santa Clara University’s Leavey School of Business. The survey has tracked outsourcing by regional companies over the last three years, and registered a slight decline in the number of companies taking jobs out of Silicon Valley last month.
Posted by jbowles at 10:07 PM
New Business
Accenture will provide NewPage Corporation with information technology and human resources services under separate multi-year outsourcing contracts the two companies signed recently. Financial terms of the contracts were not disclosed.
Perot Systems Corporation will provide inbound call center services to Arkansas Blue Cross and Blue Shield. The new agreement will help Arkansas Blue Cross quickly deliver information to prospective members about its new Medi-Pak Rx prescription drug plan.
Scottish Widows Investment Partnership (SWIP) has renewed its investment operations outsourcing arrangement with State Street Corporation following five years of successful partnership. The original outsourcing mandate, announced in October 2000, was an industry first in Europe.
The U.S. Navy’s Military Sealift Command (MSC) Atlantic Area of Responsibility, known as Sealift Logistics Command, Atlantic (SEALOGLANT), N6, has awarded Unisys Corporation a contract to provide maintenance and enhancements of the MSC’s applications used to support daily operations of the command.
Tata Teleservices, India's leading private telecom service provider has announced a strategic outsourcing of its entire IT infrastructure management to Tata Consultancy Services (TCS). TCS will manage the IT infrastructure of Tata Teleservices Ltd. (TTSL) and Tata Teleservices Maharashtra Ltd. in a deal which is estimated at over Rs. 10 billion ($250 million) over 5 years.
Affiliated Computer Services, Inc. has been awarded a business process outsourcing (BPO) contract with FirstGroup of America (FGA), the leading provider of transportation and fleet services in North America. Under the terms of the three-year contract, ACS will provide document scanning, data capture, image processing, and storage for FGA.
Ariba, Inc. has been engaged to manage indirect spend for Harris Corporation, a leading provider of communications products, systems and services for government and commercial customers.
Posted by jbowles at 10:07 PM
New Services
Cybertrust has expanded its Managed Security Services offerings to provide a full-spectrum service portfolio to organizations requiring real-time monitoring and management of their security devices and applications.
Océ Business Services has introduced new Océ MAX performance management software. The application enables organizations to more effectively and proactively manage business processes associated with outsourced document management.
IEX Corporation, a Tekelec company, announced the TotalView Outsource Manager, a feature designed to help contact centers handle information exchange and resource management between in-house and outsourced operations.
Posted by jbowles at 10:05 PM
Alliances
Mercury Interactive Corporation has expanded its alliance with Tata Consultancy Services Limited (TCS) to sell Mercury BTO software in India. TCS is a leading information technology consulting, services, and business process outsourcing organization in India.
Posted by jbowles at 10:04 PM
Advertising Information
Outsourcing Alert reaches 45,000 key decisionmakers a week. For advertising information and rates, contact Robin Carey of Custom Publishing Group. Tel: (973) 763-2882 or send an email.
Posted by jbowles at 10:04 PM
September 22, 2005
Top Stories
HP ACQUIRES PEREGRINE, APPIQ...HP has acquired Peregrine Systems and AppIQ as part of its strategy to help CIOs manage their entire IT environments. By acquiring both companies, HP says it will be able to provide customers expanded capabilities in IT asset management, IT service management and storage management.
EDELSTEIN TO HEAD NEW BT FINANCIAL UNIT...Howard Edelstein, President & CEO of BT Radianz has been named to head a new business unit within BT Global Services that will combine BT Radianz with BT Trading Systems and BT Global Financial Solutions to form a single market-facing vertical called BT Global Financial Services. Edelstein will serve as President & CEO.
BISYS TO SELL INFORMATION GROUP...BISYS has entered into a definitive agreement to sell its Information Services group, which includes its Banking Solutions, Document Solutions and Corporate Financial Solutions businesses, to Open Solutions Inc., a provider of integrated, enterprise-wide data processing technologies for banks and credit unions.
FREEBORDERS RAISES $20 MILLION IN EXPANSION CAPITAL...Freeborders, a technology outsourcing provider from China, has secured $20 million in expansion capital from new investor FTVentures and existing investors Internet Capital Group and TAL Investments. The capital will help Freeborders expand its technology center in Shenzhen, China as well as its North American and European client delivery team.
LASON REOPENS NEW ORLEANS FACILITY...LASON Systems Inc. (LASON), a leading provider of Business Process Outsourcing (BPO) solutions and integrated data and document management services, re-opened its New Orleans Facility in Elmwood Business Park yesterday.
Posted by jbowles at 10:24 AM
New Business
ARAMARK announced that ARAMARK Education, School Support Services has been awarded the contract to provide food services at 115 schools and to over 100,000 students in the School District of Philadelphia. The contract is estimated to generate $120 million in revenue over five years.
IKON Office Solutions announced a three year agreement with VHA Inc., a national alliance of leading not-for-profit health care organizations, to provide document management solutions and services to VHA's network of 2,400 member organizations.
ICG Commerce announced a multi-year engagement to provide procurement business process outsourcing services (BPO) to Rent-A-Center Inc., the nation's largest rent-to-own operator.
Affiliated Computer Services, Inc. has been awarded a three-year, multi-million dollar renewed information technology (IT) outsourcing contract with Johns Manville (JM), a leading manufacturer of premium-quality building and specialty products.
Posted by jbowles at 10:24 AM
New Services
TriZetto announced two new services to recover health plan business operations and minimize the impact of diasters on the plan, its members and providers. TriZetto's Business Continuity Services combine disaster recovery and claims processing to recover TriZetto's Facets core administrative software and claims processing operations. TriZetto also offers Claims Continuity Services, a stand-alone option that, in the event of a disaster, restores Facets claims processing capabilities.
ClientLogic opened a new contact center in Moore, Oklahoma. ClientLogic currently has 23 facilities throughout the United States and 47 facilities globally.
Posted by jbowles at 10:24 AM
Alliances
EDS and Oracle announced plans to provide joint application management, hosting and modernization services. Expanding their long-standing partnership, the two companies will integrate existing core service offerings to help clients simplify, standardize and modernize applications to adapt to ongoing business changes.
Siemens Business Services and Stonesoft Corp., a provider of integrated network security and business continuity solutions, have signed a partnership agreement covering Sweden, Norway and Denmark in Scandinavia, Germany, Belgium and Luxembourg in Central Europe. Siemens Business Services, will offer its customers Stonesoft's security products, solutions and services as part of its global offering.
Posted by jbowles at 10:23 AM
Advertising Information
Outsourcing Alert reaches 45,000 key decisionmakers a week. For advertising information and rates, contact Robin Carey of Custom Publishing Group. Tel: (973) 763-2882 or send an email.
Posted by jbowles at 10:23 AM
September 15, 2005
Top Stories
EDS EMPLOYEE DONATIONS TOP $1 MILLION...EDS employee donations to the Red Cross' Hurricane Katrina and Indian monsoon relief funds have topped $1 million. EDS, which established an online pledging system for employees on August 31, began the program by donating $100,000 to the Red Cross and will match the $1 million in contributions.
KEANE TO SUPPORT NATIONAL WEATHER SERVICE UPGRADE...Keane, Inc. has been selected to help upgrade the National Weather Service's (NWS) Advanced Weather Interactive Processing System (AWIPS). With this contract, Keane will support NWS, an agency of the National Oceanic and Atmospheric Administration (NOAA), as it continues to provide the world's best environmental prediction services. The value of the deal to Keane is approximately $54 million over 10 years.
ACS HIRES AMS MANAGING DIRECTOR...Russ Malz has joined Affiliated Computer Services, Inc. as Managing Director of Application Management Services (AMS). ACS' AMS division specializes in hosting and managing enterprise resource planning (ERP) and messaging systems.
CLIENTLOGIC NAMES EVP...ClientLogic Corporation has appointed Dale Saville to Executive Vice President of Corporate Services. He will be directly responsible for strategy and direction of ClientLogic’s global Human Resources and Information Technology functions.
Posted by jbowles at 06:27 PM
New Business
Capgemini Canada, Inc. entered into a multi-year outsourcing relationship with Bombardier Aerospace, the world’s third largest civil aircraft manufacturer. Capgemini is using the full breadth of its consulting, technology and outsourcing business units to support Bombardier’s initiative aimed at bringing its technical publications services to a world-class level.
The U.S. Federal Bureau of Prisons (BOP) has awarded the Unisys a contract for the nationwide deployment and operation of the next-generation federal inmate telephone system. Unisys will provide hardware, installation, maintenance and program management support. The contract has a three-year base period and three one-year options. The estimated value for the three-year base period is $37 million. If all option years are exercised, the estimated value to Unisys could be $96 million.
Saxon Mortgage Services, Inc., a subsidiary of Saxon Capital, Inc. will use the Fiserv MortgageServ loan servicing system to facilitate multi-site expansion of its servicing business. Since June 30, 2004, Saxon Mortgage Services has experienced a 203% growth in total mortgage loans serviced.
Posted by jbowles at 06:26 PM
New Services
Ceridian has launched Ceridian Backup Care Solutions powered by Work Options Group.
Posted by jbowles at 06:26 PM
Alliances
SER Solutions, Inc., a global provider of contact center solutions, has partnered with Ramco Systems, Ltd. of Chennai, India to offer a complete end-to-end call management and agent performance solution.
Posted by jbowles at 06:26 PM
Advertising Information
Outsourcing Alert reaches 45,000 key decisionmakers a week. For advertising information and rates, contact Robin Carey of Custom Publishing Group. Tel: (973) 763-2882 or send an email.
Posted by jbowles at 06:25 PM
September 08, 2005
Top Stories
ABN AMRO SIGNS MEGA-OUTSOURCING DEAL...ABN AMRO has signed global services agreements with five IT-vendors for five years, for a total value of approximately EUR 1.8 billion ($2.22 billion). The group has selected Accenture, IBM, Infosys, Patni, and Tata Consultancy Services (TCS) to handle its technology operations.
CONVERGYS NAMES PRESIDENT, COO...Convergys Corporation has named David F. Dougherty, Executive Vice President of Convergys’ Global Information Management Group, President and Chief Operating Officer (COO) of Convergys. In his new role, he is responsible for the company’s Customer Care and Information Management businesses.
BUYERS CHANGING OUTSOURCING INDUSTRY...The outsourcing industry is undergoing major changes, as buyers demand more value, more flexibility and more manageability from business process outsourcing (BPO) and IT outsourcing (ITO) engagements, according to new findings by Everest Research Institute, based on research that the organization conducted jointly with Bernstein Research.
FISERV ACQUIRES VERTICALPOINT...Fiserv Inc. has acquired VerticalPoint, Inc., a provider of underwriting software to the life and health insurance market. The acquisition will allow Fiserv's Insurance Solutions Group to offer a Web-based, new-business workflow portal solution to life insurance carriers.
LAST CHANCE - OUTSOURCING MARKETING OPPORTUNITY..."Best Practices for Managing Outsourcing Relationships," the next Forbes/Outsourcing Center special text/advertising report, will appear in the November 28 issue of Forbes, which reaches 4.5 million decisionmakers. Participating advertisers get an additional free text page to tell their customer success story. For a prospectus and special rates available only to Outsourcing Alert readers, contact Jerry Bowles.
Posted by jbowles at 07:06 PM
New Business
BT and HP announced a European IT and networking services contract with Hertz Europe Ltd. BT and HP will supply Hertz with a wide range of IT and networking services over the five year contract.
Accenture and Citadel Investment Group , LLC have signed a ten-year agreement under which Accenture will manage key aspects of Citadel's financial data management processes to help Citadel enhance the quality of its market information and secure greater returns from its data operations.
Affiliated Computer Services, Inc. (ACS) has been awarded a four-year information technology (IT) outsourcing contract with FUJIFILM Electronic Materials U.S.A., Inc., a global leader in products and services for the semiconductor industry.
EDS has been awarded an approximately $59.1 million, three-year contract extension by the state of Oklahoma to continue processing healthcare provider claims and provide hardware and software upgrades for the state's Medicaid Management Information System developed by EDS.
Posted by jbowles at 07:06 PM
Alliances
Unisys Corporation and Synapsis have won a contract from ECOPETROL, Colombia’s state-owned oil company, for outsourcing services to manage its IT infrastructure and enterprise applications. The contract, signed in the first quarter of 2005, has a total value of approximately $27 million over four years, and is worth approximately $14 million to Unisys and $13 million to Synapsis.
Ceridian has formed an exclusive agreement with Rideau Recognition Solutions to deliver reward and retention programs to its clients. Ceridian Rewards and Recognition Solutions, powered by Rideau, will be rolled out in fall 2005.
Posted by jbowles at 07:06 PM
New Services
API Outsourcing, Inc. (API) and Logistics Planning Services (LPS) announced a strategic agreement to provide customers with a total Transportation Payables Solution that combines API’s freight payment solution with LPS’ rating, routing & audit services.
Global Crossing announced the launch of a hosted Voice over IP (VoIP) service. Global Crossing Hosted IP Voice combines the functionality of a traditional private branch exchange (PBX) with additional value-added services, delivered over Global Crossing's MPLS-based global IP network. The service has been developed in collaboration with TeleWare Plc, the UK's leading provider of intelligent business communication solutions to enterprises and service providers.
Posted by jbowles at 07:05 PM
Advertising Information
Outsourcing Alert reaches 45,000 key decisionmakers a week. For advertising information and rates, contact Robin Carey of Custom Publishing Group. Tel: (973) 763-2882 or send an email.
Posted by jbowles at 07:04 PM
September 01, 2005
Top Stories
PER-SE ACQUIRES NDCHEALTH IN BILLION DOLLAR TRANSACTION...Per-Se Technologies, Inc. will acquire NDCHealth Corporation, a leading provider of healthcare technology and information solutions, in a transaction valued at approximately $1 billion, including the assumption of debt.
HEWITT STUDY FINDS BASE PAY FLAT FOR 2006...The good news about pay increases in 2006 is that base salary increases are not projected to be any worse than this year. The bad news is that they’re not expected to be much better, and rising health care and energy costs have the potential to offset salary gains, according to Hewitt Associates.
INTEGREO BUYS SIEMENS SERVICE LINE...Integreo, Inc., formerly STI Knowledge, has acquired the Revenue Cycle Managed Services (RCMS) service line of Siemens Medical Solutions. This purchase, the third healthcare acquisition made by Integreo in less than two years.
FISERV ACQUIRES VERTICALPOINT...Fiserv Inc. has acquired VerticalPoint, Inc., a provider of underwriting software to the life and health insurance market.
OUTSOURCING MARKETING OPPORTUNITY..."Best Practices for Managing Outsourcing Relationships," the next Forbes/Outsourcing Center special text/advertising report, will appear in the November 28 issue of Forbes, which reaches 4.5 million decisionmakers. Participating advertisers get an additional free text page to tell their customer success story. For a prospectus and special rates available only to Outsourcing Alert readers, contact Jerry Bowles.
Posted by jbowles at 07:27 PM
New Business
Computer Sciences Corporation has signed an information technology (IT) outsourcing agreement with British Nuclear Group, a leading provider of nuclear site management, decommissioning and clean-up services. The estimated value of the agreement to CSC is approximately $135 million over five years.
Affiliated Computer Services, Inc. (ACS) has been awarded an additional information technology (IT) outsourcing contract with GlaxoSmithKline (GSK), the second-largest pharmaceutical company in the world. The contract is valued at $100.5 million over five years.
Perot Systems Corporation has entered into an agreement to provide revenue cycle outsourcing solutions to Northwest Hospital & Medical Center, based in Seattle.
Unisys Corporation has signed a contract extension to manage call center services for Compañía Anoníma Nacional Telefonos de Venezuela (Cantv). Under the contract extension, signed in the second quarter of 2005 and with a value estimated at approximately $12 million over two years, Unisys will continue to provide services ranging from operator assistance to customer service.
State Street Global Advisors (SSgA), the investment management arm of State Street Corporation and the largest institutional fund manager in the world, announced has been selected by Assuranceforeningen Skuld (Skuld) to manage $330 million of its multi-asset insurance portfolio.
BMC Software has chosen Symphony Service Corporation to provide Product Development Lifecycle (PDLC) services, including product development, quality assurance and level three customer support for selected BMC products. Unlike other traditional outsourcing engagements, Symphony Services and BMC will share development outcomes and compensation for products that Symphony's Global Operations Centers manage for BMC.
Posted by jbowles at 07:27 PM
Alliances
CMP Media and CyberMedia, South Asia's first and largest specialty media house, announced a joint venture to build a global media portfolio focused on worldwide outsourcing services.
Computer Sciences Corporation and Document Sciences Corporation announced a cooperative marketing agreement under which the policy and forms creation and delivery capabilities of Document Sciences’ xPression have been integrated with CSC’s nbAccelerator and CyberLife software.
IONA Technologies and MetaSecure have entered into a comprehensive technology, marketing and sales agreement.
Posted by jbowles at 07:10 PM
Advertising Information
Outsourcing Alert reaches 45,000 key decisionmakers a week. For advertising information and rates, contact Robin Carey of Custom Publishing Group. Tel: (973) 763-2882 or send an email.
Posted by jbowles at 07:09 PM
