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The A to Z of Outsourcing

Outsourcing in the Banking Industry is Stuck in the ’90s

Proven Provider Selection: Eliminating the Turkeys

Find Your Right Approach to Cloud: Public, Private and Hybrid Clouds

Architectural Strategies for Cloud Computing

IT Infrastructure and Operations: Still Immature After All These Years

The Business Case for Outsourcing Software Testing to a Separate Vendor

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Mapping onto the Workforce of Tomorrow: How RPO Can Play a Role

Is Transition Management in BPO Undergoing a Transition?

Market Vista: Q2 2010

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December 22, 2005

Top Stories

CSC FINALIZES DUPONT DEAL...Computer Sciences Corporation has signed a definitive agreement to extend CSC's information technology (IT) outsourcing services agreement with DuPont. The new contract extends services through December 2014. CSC now estimates the total value of the seven-year and seven-month extension period at $1.6 to $2 billion depending on fluctuations in business volume and future efficiency gains...CSC also announced that MBDA, a missile systems company, has extended its IT outsourcing contract for its UK operations with CSC until December 2008. CSC estimates the value of that extension to be approximately $100 million.

OUTSOURCING POISED FOR RESTRUCTURING SAYS EVEREST GROUP...2005 was a watershed year for the global outsourcing industry, with key events indicating a marketplace poised for restructuring, according to an in-depth review of buyer, supplier and investor activity by Everest Group, one of the industry’s largest strategic advisory firms.

PEROT SYSTEMS LAUNCHES NEW IT OPERATIONS IN INDIA...Perot Systems Corporation announced the launch of information technology infrastructure operations from its Noida and Bangalore facilities. The company also dedicated a new office tower at its Noida campus, continuing the steady expansion of its India footprint and employee base.

PLAN NOW F0R THE FORBES/OUTSOURCING CENTER 2006 SPECIAL REPORTS...Forbes and Outsourcing Center are teaming up again in 2006 for two special text/advertising reports focused on best practices in managing outsourcing relationships. The first report is scheduled for the June 5, 2006 issue of Forbes and will close for advertising participation on March 21. The second report will appear in the November 27 issue with a close date of September 11. Participating advertisers receive a text profile or customer case study that will appear in the pages of Forbes magazine, which is read by some 5 million business decisionmakers. For more information and special rates for Outsourcing Alert subscribers, contact Jerry Bowles.

New Business

EDS announced a €200 million agreement for information technology services (IT) and business process outsourcing services (BPO) with “la Caixa” that will extend the relationship for an additional four years. Since 1996, EDS has provided a range of IT services for the leading Spanish financial services firm.

Perot Systems Corporation announced a ten-year agreement with Howard University to provide information technology (IT) and revenue cycle outsourcing (RCO) services to the University's Faculty Practice Plan physicians.

Affiliated Computer Services, Inc. has signed a five- year, $61 million contract with the state of New Hampshire's Department of Health and Human Services (DHHS) to design, develop, and implement a new Web- based Medicaid Management Information System (MMIS).

Ness Technologies, Inc., a global provider of IT solutions and services, has won a ten-year outsourcing contract worth approximately $8.5 million with Israel's Yellow Pages. The project includes overall responsibility for Yellow Pages' IT infrastructure and support for the company’s 500 users.

Citizens National Bank of Elkins, a $238 million asset bank in Elkins, W.V., has chosen Fiserv for a solution set that includes core processing, ATM/debit processing and both consumer and business Internet banking. Citizens National Bank, founded in 1923, is a community bank with offices in four West Virginia counties.

Alliances

Wipro announced a global partnership agreement with SAP America, Inc., a subsidiary of SAP AG, to provide implementation services for SAP Business One, SAP's integrated business management solution for small and mid-size enterprises, subsidiaries and operating locations of large enterprises in the U.S. Wipro will offer full life-cycle implementation services to subsidiaries of large enterprises in the U.S. and jointly explore opportunities for SAP Business One.

Docucorp International has signed a marketing agreement with Systems & Software, Inc. Through this alliance, the companies will provide utilities with complementary technologies for a comprehensive, end-to-end bill design, production and delivery solution.

Advertising Information

Outsourcing Alert reaches 45,000 key decisionmakers a week. For advertising information and rates, contact Peter Bowes. Tel: (508)359-9356 or send an email.

December 15, 2005

Top Stories

PROCUREMENT OUTSOURCING TO HIT $380 MILLION IN 2006...The US$297 million multi-process procurement outsourcing (PO) sector is growing at 30% per annum and will exceed US$380 million in 2006, according to new findings by Everest Research Institute, with the potential to grow into a multi-billion dollar market over time.

ACS COMPLETES SWISS ACQUISITION...Affiliated Computer Services, Inc. has completed its acquisition of the Transport Revenue division of Ascom AG, a Switzerland-based communications company. ACS gains three business units: transit, parking, and toll collection with office locations across nine countries. The purchase price was CHF 130 million (approximately USD $100 million), funded through ACS' existing credit facility.

UNISYS CENTERS CERTIFIED TO BRITISH STANDARD 7799...BSI Management Systems (BSI) has certified eight of Unisys Corp.'s managed services centers (MSCs) to the industry-coveted British Standard 7799 (BS 7799:2002). BS 7799 outlines standards specific to information security management and focuses on areas such as security policy, physical and environmental security, access control and business continuity management.

CERIDIAN NAMES SVP...Ceridian has named Zachary Meyer as its new senior vice president of commercial EAP and work-life services. Meyer brings more than 12 years of commercial behavioral health experience to Ceridian.

PLAN NOW F0R THE FORBES/OUTSOURCING CENTER 2006 SPECIAL REPORTS...Forbes and Outsourcing Center are teaming up again in 2006 for two special text/advertising reports focused on best practices in managing outsourcing relationships. The first report is scheduled for the June 5, 2006 issue of Forbes and will close for advertising participation on March 21. The second report will appear in the November 27 issue with a close date of September 11. Participating advertisers receive a text profile or customer case study that will appear in the pages of Forbes magazine, which is read by some 5 million business decisionmakers. For more information and special rates for Outsourcing Alert subscribers, contact Jerry Bowles.

New Business

Bank of Ireland has appointed Accenture as the future supplier of some of the its training and purchasing services. The bank expects to save more than €20 million per year under the seven-year, $150M deal for learning and procurement BPO.

H.B. Fuller Company recently signed a 10-year outsourcing contract under which Accenture will provide H.B. Fuller with outsourcing services for virtually all information technology functions, including infrastructure operations and maintenance, application maintenance, systems integration, and technical help desk. Financial terms were not disclosed.

Renesas Technology Corp. will establish a new joint company with Accenture, Hitachi, Ltd., and Mitsubishi Electric Corporation, which will provide outsourcing services to Renesas.

New Services

NaviSite, Inc. has launched formalized Help Desk Support Services for enterprise applications and desktop computers. NaviSite's Application Help Desk Support Services provide front-line support for application-related questions regarding Oracle E-Business Suite, PeopleSoft, and Siebel.

Alliances

Paychex has partnered with Affiliated Computer Services and Mellon Financial Corporation to introduce a new product designed to serve as a tax savings tool for employers and employees in a time of rising health care costs. The Paychex Health Savings Account (HSA) is available to Paychex small business clients and clients of Paychex Premier and Paychex Business Solutions.

Advertising Information

Outsourcing Alert reaches 45,000 key decisionmakers a week. For advertising information and rates, contact Peter Bowes. Tel: (508)359-9356 or send an email.

December 08, 2005

Top Stories

EMPLOYEASE REVENUES UP 53% IN Q1 2006...Employease, a provider of on demand HR, benefits administration and outsourcing solutions, posted record results for fiscal Q1 2006 ending September 30, 2005. Revenues grew 53% compared to fiscal Q1 2005. The quarter marked the company's 32nd quarter of revenue growth.

EVEREST GROUP NAMES CANADIAN HR SPECIALISTS...Everest Group announced the appointments of Paulette Kestelman and Van Zorbas as HRO Specialists, effective immediately. Kestelman joined Everest from IBM, where she was Business Transformation Solution Leader for the Americas and Zorbas was formerly Vice President, Strategic Sourcing - Canada, at Hewitt Associates, where he worked with the firm’s outsourcing practice in Canada. They will be based in Toronto.

BAIRD INVESTS IN PINSTRIPE...Baird Venture Partners has completed a $3 million investment in Milwaukee-based Pinstripe, Inc., a recruitment process outsourcing (RPO) services provider focused on talent acquisition and management solutions.

PLAN NOW F0R THE FORBES/OUTSOURCING CENTER 2006 SPECIAL REPORTS...Forbes and Outsourcing Center are teaming up again in 2006 for two special text/advertising reports focused on best practices in managing outsourcing relationships. The first report is scheduled for the June 5, 2006 issue of Forbes and will close for advertising participation on March 21. The second report will appear in the November 27 issue with a close date of September 11. Participating advertisers receive a text profile or customer case study that will appear in the pages of Forbes magazine, which is read by some 5 million business decisionmakers. For more information and special rates for Outsourcing Alert subscribers, contact Jerry Bowles.

New Business

Perot Systems Corporation announced a new five-year agreement to deliver application management services to Sentara Healthcare, Inc., based in Norfolk, Virginia. Perot Systems will provide project management services and applications support and maintenance to ensure continuity of Sentara's current clinical information systems while the healthcare delivery organization works to deploy eCare, its new clinical information system.

Vertex Financial Services, a leading UK provider of outsourced business services, has awarded Sapient a six-and-a-half-year contract to manage and operate its offshore software development capability. This new contract extends Sapient's three-year relationship with Vertex.

BISYS announced new relationships with fund complexes Arrivato Advisors, LLC and Bjurman, Barry & Associates. For Arrivato, BISYS will provide services to support the launch of a new product to the US marketplace; Bjurman, Barry, & Associates will utilize BISYS' full-service outsourcing offering including fund accounting, fund administration, transfer agency, distribution, legal, regulatory, and compliance services.

ARAMARK Education - Facility Services has been awarded a 5-year, $60 million contract to provide custodial, maintenance and ground services to the Providence School Department in Providence, Rhode Island.

TechTeam Global, Inc. has been chosen by industrial real estate firm Duke Realty Corporation to deliver help-desk and desk-side management support for all of its IT hardware and applications.

Alliances

Affiliated Computer Services, Inc. has formed an alliance with Microsoft to provide development and marketing resources to deliver its fire department records management system, ACS FIREHOUSE Software, on the Microsoft .NET platform.

Tata Consultancy Services Limited announced a global partnership with SAP AG to deliver Adaptive Manufacturing solutions utilizing SAP xApp Manufacturing Integration and Intelligence (SAP XMII) and a set of TCS' industry specific composite applications.

Advertising Information

Outsourcing Alert reaches 45,000 key decisionmakers a week. For advertising information and rates, contact Peter Bowes. Tel: (508)359-9356 or send an email.

December 01, 2005

Top Stories

EVEREST GROUP EXPANDS HR PRACTICE; ADDS KEY EXPERTS...Everest Group announced the expansion of its HR specialty practice to meet the growing demands of the HR outsourcing (HRO) marketplace and to accommodate the firm's rapid growth in this area. Three HR business process outsourcing experts - Marc Pramuk, Scott McNerney and Dwayne Fowler - recently joined Everest Group from Convergys, EquaTerra and Hewitt Associates, respectively, as HRO Specialists, augmenting the firm's high-powered, highly collaborative HRO consulting team.

PFSWEB ACQUIRES ECOST.COM...PFSweb, Inc. and eCOST.com, a leading online discount retailer, have signed a definitive merger agreement. Under the terms of the agreement, eCOST.com will become a wholly owned subsidiary of PFSweb, operating under the eCOST.com name and maintaining its headquarters in Torrance, California.

EMPLOYEASE TOPS CORPORATE BENEFIT LIST...The Employease Network is once again ranked No. 1 employee benefit information system by Business Insurance magazine in the publication's Oct. 31st issue. The publication ranks systems by the number of installations in corporate benefit departments. This is the second year in a row that the Employease solution has topped the list.

PAYCHEX COMPLETES KATRINA CHECK PROCESSING...Paychex, Inc. has now completed processing, printing and mailing hundreds of thousands of disaster relief checks for victims of Hurricane Katrina in Louisiana. Paychex partnered with the American Red Cross and Hibernia National Bank, the largest banking organization in Louisiana, in this initiative to provide emergency funds to people affected by the disaster. During the six-week program, Paychex processed 271,099 disaster relief checks, totaling nearly $270 million.

CLICK COMMERCE ACQUIRES REQUISITE...Click Commerce, Inc., a leading provider of collaborative commerce solutions and a pioneer in the software as a service (SaaS) industry, announced it has acquired Requisite Technology, Inc.

New Business

Wachovia Corp. and Genpact have signed an agreement for Genpact to establish an offshore operation to support Wachovia's business process outsourcing efforts. The seven-year arrangement will provide Wachovia access to Genpact's global operations and initially will be located in India. Terms of the agreement were not disclosed.

Ahold USA, Inc. has engaged Fujitsu Transaction Solutions Inc. as a primary services provider for in-store technology at Stop & Shop and Giant-Landover stores in the U.S. The five-year agreement covers nearly 600 stores and is valued at $65 million.

China Minsheng Banking Corporation Limited (CMBC), Accenture and SAP China, a subsidiary of SAP AG, announced an agreement to cooperate in building a world-class core banking system for CMBC. The agreement was formalized at a signing ceremony in Beijing, China. The implementation of the core banking solution by Accenture and SAP is part of the bank's efforts to transform its operations and prepare for future growth.

Branch Banking and Trust (BB&T) has deployed GXS Managed Services for the management of its B2B financial transactions. Complementing its existing payment services, BB&T's Treasury Management team is launching a highly-integrated electronic commerce solution using GXS Managed Services to exchange payables and receivables information with its business clients.

WMH Tool Group, a subsidiary of Walter Meier Holding AG and a leading manufacturer of tools, woodworking and metal processing products, has selected SPS’ software-as-a-service offering for its EDI needs, replacing its former EDI software solution. The hosted EDI service will be fully implemented by the end of November and integrated with WMH’s SAP R/3 system.

Alliances

ICT GROUP, INC. and APX Logistics, Inc., one of the largest business-to-consumer package delivery providers in the United States, announced an integrated joint marketing initiative.

Advertising Information

Outsourcing Alert reaches 45,000 key decisionmakers a week. For advertising information and rates, contact Peter Bowes. Tel: (508)359-9356 or send an email.

November 23, 2005

Top Stories

IDC SURVEY SEES SHIFT TO BPO, REDUCTION IN DEAL VALUE...An IDC study of the top 100 outsourcing deals in 2004 reveals fundamental changes in the outsourcing marketplace, including a dramatic shift to more business process outsourcing (BPO), an increase in the number of players, and a reduction in total deal value. The value of the top 100 outsourcing deals in 2004 decreased by 1.2% from $69.1 billion in 2003 to $68.3 billion in 2004. However, qualifying for the top 100 in 2004 required a minimum deal value of $184 million, a 5.1% increase from 2003. The study also found that the share of BPO and processing services deals in the top 100 outsourcing deals increased from 15.2% in 2003 to 25% in 2004, while the share of IT outsourcing services suffered a decline to 75% of the 2004 market.

KKR CLOSES ACCELLENT ACQUISITION...KRG Capital Partners (KRG), a Denver-based private equity firm, announced the closing of the previously announced sale of its portfolio company, Accellent Inc. (formerly UTI Corporation), to an affiliate of Kohlberg, Kravis, Roberts & Co. (KKR), in a transaction valued at approximately $1.3 billion. Accellent is the largest provider of integrated contract manufacturing and design services to the medical device industry.

OPI OPENS NEW BPO CENTER IN INDIA...Outsource Partners International, Inc. (OPI) announced the opening of its new state-of-the-art business process outsourcing (BPO) service center in Kochi, India. More than 200 attended the opening ceremonies, which were highlighted by a speech from the Honorable Chief Minister of Kerala, where Kochi is located.

THINK ATLANTIC CANADA...The Atlantic Canada Opportunities Agency (ACOA), a Canadian federal government agency, recently released its latest research on foreign-owned firms investing in the Atlantic Canada region. Key findings indicate that more than 98% of the foreign-owned firms surveyed believe Atlantic Canada is meeting or exceeding their expectations for improved efficiency, quality of workforce and cost reduction, while 90% said they would recommend Atlantic Canada as a site for new foreign investment.

CHINA CALLING...PacificNet Inc., a leading provider of Customer Relationship Management (CRM), call center, Interactive Voice Response (IVR) services and Value-Added Services (VAS) in China, has entered into an agreement to acquire a majority and controlling interest in Guangzhou Wanrong Information Technology Co., Ltd., one of the leading value-added telecom service providers in China. The acquisition is expected to close within a month

New Business

Ceridian has been selected as the human resources outsourcing (HRO) provider for PHH Corporation. Ceridian will be responsible for a wide range of processes for 8,000 PHH employees in the U.S. and Canada, including HR and payroll management, benefits, time and attendance, talent and acquisition management, COBRA, Flexible Spending Account services, tax filing, work-life and employee assistance program (EAP), and HR compliance.

The Housing Trust Fund Corporation of New York, a division of Housing and Community Renewal, selected CGI Group Inc. for an up to five-year business process services contract valued at US$44 million to serve the United States Department of Housing and Urban Development (HUD). CGI now is responsible for the administration of more than 76,000 housing units within the state of New York and more than 214,000 across the United States, making it the largest HUD processor of its kind in the U.S.

New Services

Gartner Consulting, a unit of Gartner, Inc., has expanded its IT Outsourcing Benchmarking Solutions capabilities with an enhanced methodology that allows companies to compare their services contracts with similar outsourced contracts in the marketplace.

Ceridian has introduced a new tool to its work-life and employee assistance program (EAP) Web site, LifeWorks Online, that will help employee caregivers and mature workers reduce the stress and time spent gathering and understanding national and state-specific information on Medicare coverage and eligibility.

Alliances

Intelligroup Inc. has formed a strategic alliance with Hitachi Ltd., Information & Telecommunication Systems Group to establish the 'Hitachi Global Solution Center' ('Hitachi GSC') at Intelligroup's Development Center in Hyderabad, India. Intelligroup will support Hitachi's global outsourcing requirements by providing systems development, maintenance, and support services for enterprise resource planning ("ERP") applications, primarily SAP.

Advertising Information

Outsourcing Alert reaches 45,000 key decisionmakers a week. For advertising information and rates, contact John Havens of Custom Publishing Group. Tel: (973) 763-2829 or send an email.

November 17, 2005

Top Stories

ARAMARK REPORTS RECORD FISCAL YEAR...ARAMARK Corporation reported fiscal 2005 sales of $11.0 billion, an 8 percent increase over 2004. Net income rose 10 percent to $288 million, a record from continuing operations, and diluted earnings per share increased 13 percent to $1.53. For the fourth quarter, the company reported sales of $2.8 billion, an increase of 6 percent over the prior year quarter. Net income rose 8 percent to $92 million. Diluted earnings per share increased to $0.49.

EQUATERRA, TPI TO MERGE...EquaTerra and TPI, Inc. have signed an agreement to merge the two companies. Together, the new firm will have approximately 550 employees in the Americas, Europe, and Asia-Pacific. The merger is expected to close in January, 2006.

OPI NAMED TO INC. FASTEST-GROWING LIST...Outsource Partners International, Inc. (OPI) has been included in Inc. magazine’s 24th annual Inc. 500 ranking of the fastest-growing private companies in the country. With three-year revenue growth of 842%, Outsource Partners International ranks No. 111 on the list.

ADP/SAP PROMOTE HR SUCCESS...ADP Employer Services and SAP AG announced that GlobalView, ADP's HR outsourcing offering for multi-national organizations based on SAP's HR business solutions, has been selected by 32 global companies in 24 countries as the HR Business Process Outsourcing (BPO) platform to serve nearly 190,000 employees.

EXULT FOUNDER JOINS TRINET BOARD...TriNet, a nationwide provider of human resource (HR) services for small and mid-sized companies, today announced the appointment of HR outsourcing pioneer Jim Madden to its board of directors. Madden was Founder, Chairman, and Chief Executive Officer of Exult, Inc.

New Business

EDS announced a five-year, approximately $500 million global information technology (IT) enterprise outsourcing agreement with Royal Ahold, the world’s fourth-largest grocery retailer. EDS will provide Ahold with a flexible IT infrastructure and applications management services to transform and re-engineer its global operations, which include more than 4,000 supermarkets and retail outlets in Europe and the United States.

Ceridian has been selected as the human resources outsourcing (HRO) provider for PHH Corporation. Ceridian will be responsible for a wide range of processes for 8,000 PHH employees in the U.S. and Canada, including HR and payroll management, benefits, time and attendance, talent and acquisition management, COBRA, Flexible Spending Account services, tax filing, work-life and employee assistance program (EAP), and HR compliance.

New Services

Fiserv EFT has introduced a prepaid gift card product suite that includes an off-the-shelf solution that can quickly establish a prepaid gift card program, a customizable solution for clients seeking to design a program specifically for their customers or members and a shared-revenue solution for financial institution groups and associations.

Elance, Inc. announced the general availability of Elance 5, the next generation of its industry leading Services & Contractor Management OnDemand solution used by 200,000 employees at leading companies.

Alliances

EMC Corporation and Unisys Corporation announced an expansion of their 13-year alliance to include the development of new, specialized solutions designed to help customers address key business challenges – especially the availability of critical information for real-time business decision-making. The new solutions, expected to focus initially on three areas of collaboration – real-time infrastructure, solutions for public-sector organizations and enterprise security – are planned to integrate Unisys services and EMC technology to enable information lifecycle management, which facilitates movement, availability and use of critical information throughout the enterprise value chain.

The TriZetto Group, Inc. and Affiliated Computer Services, Inc. announced an alliance to provide integrated health savings account (HSA) processing. Through its relationship with Mellon Financial Corporation, ACS is a leading provider in HSAs, offering a complete range of services for health plans and employers and interest-bearing, FDIC-insured accounts for individuals.

Advertising Information

Outsourcing Alert reaches 45,000 key decisionmakers a week. For advertising information and rates, contact John Havens of Custom Publishing Group. Tel: (973) 763-2829 or send an email.

November 10, 2005

Top Stories

FISERV NAMES CEO...Fiserv, Inc. announced the appointment of Jeffery W. Yabuki, a leading financial services executive, as president, chief executive officer and a member of the board of directors effective on or before Dec. 1, 2005.

WNS GLOBAL SERVICES ACQUIRES TRINITY PARTNERS...WNS Global Services, a leading leading BPO firm, announced the acquisition of Tucson, Arizona-based Trinity Partners, a provider of BPO and IT business solutions to financial institutions, with an aim to strengthen its operations in the mortgage and financial services BPO market. WNS will acquire Trinity's existing client contracts, including a $60 million, multi-year, outsourcing contract with First Magnus Financial Corporation, a top 15 wholesale lender.

ACHIEVO ACQUIRES ANS GROUP...Achievo Corporation, a CMM certified global software and IT outsourcing provider headquartered in Silicon Valley with operations in the U.S., Europe, and China, signed a definitive merger agreement with ANS Group. Advanced Network Services (ANS) Group is one of the most successful and fastest growing software outsourcing providers in Asia with deep expertise in the Japanese offshore outsourcing market.

SERVICEMASTER REVENUES UP...The ServiceMaster Company announced third quarter 2005 revenues of $1.1 billion, an eight percent increase compared to the prior year. Third quarter earnings per share from continuing operations were $.25, nine percent above the $.23 reported in 2004. For the nine months, revenues of $3.1 billion were up seven percent, and earnings per share from continuing operations were $.56, a 10 percent increase.

CLIENTLOGIC OPENS TEXAS CENTER...ClientLogic announced the opening of a new contact center in Nederland, Texas. This facility marks the second new domestic site ClientLogic has opened this year, including a center in Moore, Oklahoma. The new site increases ClientLogic's global footprint to 24 BPO facilities throughout the United States and 50 facilities globally.

New Business

EDS Israel has signed an IT outsourcing contract with the First International Bank of Israel (FIBI). The project is valued at approximately $108 million over eight years. The FIBI contractis the largest outsourcing contract in Israel and the first such contract in the Israeli banking industry.

The U.S. Department of Health and Human Services (HHS) awarded Unisys an information technology outsourcing contract under which Unisys will support 8,000 users across eight HHS operating divisions. The contract has a three year base period, which is worth approximately $65 million, and one two-year option period, exercisable at the government's discretion, which is worth approximately an additional $35 million...Rabobank, the largest financial services provider in the Dutch market, has extended its existing business process outsourcing contract with Unisys Payment Services and Solutions (UPSS) for all paper-related payment transactions for two additional years through December 31, 2010.

The State of New Jersey has selected Accenture to develop and implement the New Jersey State Unemployment Compensation Claimant and Employer Service System (NJ SUCCESS), designed to modernize the delivery and administration of unemployment insurance benefits throughout the state. Under the four-year, $39.9 million contract, Accenture will integrate the New Jersey Department of Labor and Workforce Development's (NJLWD) unemployment claims interfaces with its back-office document management systems.

Perot Systems Corporation has been awarded a $14 million, three-year extension by Lexington, Kentucky-based CHA Health. The agreement extends a five-year contract between the two companies that began in April 2002 when CHA selected Perot Systems to provide BPO and technology management services, including leading Web-based health
plan management tools.

Motorola has selected General Physics Corporation (GP) to provide outsourced training and vendor management services. Under the terms of this major agreement, GP will select and manage training suppliers for Motorola to meet its workforce development needs in North America.

New Services

Pramati Technologies, a leading provider of Java application servers and tools, today announced the formal launch of its Product Development Services division. The new division will provide services to software product companies that are looking at outsourcing and offshoring their product lifecycle activities.

Alliances

Service Net Solutions, LLC has signed an agreement to administer new service plans for Toshiba America Information Systems' Digital Products Division. The strategic relationship calls for a phased rollout of the warranty program which will cover Toshiba's full line of notebook computers and projectors. The over-arching theme will be "The Ease of Doing Business."

Advertising Information

Outsourcing Alert reaches 45,000 key decisionmakers a week. For advertising information and rates, contact John Havens of Custom Publishing Group. Tel: (973) 763-2829 or send an email.

November 03, 2005

Top Stories

CONVERGYS SIGNS BILLION DOLLAR HR DEAL WITH DUPONT...DuPont and Convergys Corporation have signed a contract under which Convergys will provide comprehensive Human Resources (HR) transactional services to DuPont’s 60,000 employees and 102,000 retirees in 70 countries and 30 languages around the world. Convergys expects this contract to generate revenues in excess of $1.1 billion over its thirteen-year duration.

FISERVE BUY INSURANCE SERVICES FIRM...Fiserv, Inc. has acquired Xcipio, Inc., a Web-based insurance rating and automation solution provider, as part of its plan to expand its technological footprint in the insurance industry.

COGNIZANT REPORTS RECORD QUARTER...Cognizant Technology Solutions Corporation announced third quarter revenue increased to $235.5 million, up 52% from the year-ago quarter. Net income increased to $40.6 million, up 56% from the year-ago quarter. Diluted quarterly EPS of $0.28 compared to $0.18 in the year-ago quarter.

EDS REPORTS IMPROVEMENT...EDS reported third quarter net income of $8 million, or 2 cents on a per share basis, versus a net loss of $153 million, or 30 cents per share, in last year's third quarter. The company also announced it has established an Office of the Chief Operating Officer (COO) to increase alignment and drive change throughout its business operations.

SINGAPORE FOCUSES ON HIGH END IT SERVICES...Ranked by the US Department of Commerce as the second fastest growing hub for outsourcing among US businesses, Singapore is focusing on developing itself as a hub for high-end BPO and offshore activities. with more companies using different offshore locations for outsourcing needs according to each location's strengths (multisourcing), Singapore has seen rising demand as a regional location for the storage, processing and distribution of high-end data and related IT services.

OUTSOURCING EXCELLENCE AWARDS EXTENSION! ...We’ve extended the deadline for the 2006 Awards, so you still have time to get your nominations in. Go to www.outsourcing-awards.com and download the nomination form. Deadline for entries is November 14th. Don't miss this opportunity to be recognized as the best of the best in the outsourcing industry in this "Oscars of Outsourcing!"

New Business

Accenture has won a $6.3 million contract to provide information technology services for the Defense Logistics Agency's (DLA) Product Data Management Initiative (PDMI), which is designed to replace DLA's existing repository for technical data.

ARAMARK Healthcare Management Services (ARAMARK Healthcare) was selected to provide on-site retail dining services at The University of Texas M.D. Anderson Cancer Center in Houston -- one of the world's top cancer hospitals. Under a seven-year agreement, ARAMARK Healthcare is operating one of the largest hospital retail programs in the country, with 10 dining facilities serving visitors, patients and 15,000 employees.

Apptis, Inc. has won a 5-year multiple award blanket purchase agreement (BPA) for information technology services from the Department of Homeland Security. The indefinite delivery indefinite quantity (IDIQ) contract, which gives the agency access to a vast array of Apptis products and services, has a potential value of $100 million.

New Services

Mercer HR Services announced the launch of Mercer Retirement Solutions, an integrated outsourcing offering for defined contribution (DC) and defined benefit (DB) plan sponsors. This offering - which includes plan management, asset management, administration, and employee communications - allows employers to effectively address the costs, complexities, and risks of all aspects of their retirement plans.

Advertisments

Adjoined Consulting is an industry-focused, full-service management consulting, technology services and outsourcing firm that offers strategic operational consulting, leading-edge technology integration, outsourcing solutions and original, independent research. For more information, visit www.adjoined.com.

Library Associates offers outsourcing services for all types of libraries - short/long-term, small/large-scale, corporate/non-profit. Whether you need staff for special projects lasting a week or an annual contract, or whether you need services from cataloging to management - contact Library Associates.

Alliances

Unisys Corporation and Oracle announced that the two companies are working on several combined global initiatives in areas such as financial services, outsourcing solutions, public sector and enterprise computing.

Advertising Information

Outsourcing Alert reaches 45,000 key decisionmakers a week. For advertising information and rates, contact John Havens of Custom Publishing Group. Tel: (973) 763-2829 or send an email.

October 27, 2005

Top Stories

ADP REVENUES UP 10 PERCENT...Automatic Data Processing, Inc. reported 10% revenue growth, to $2.0 billion, and $0.38 earnings per share for the first fiscal quarter ended September 30, 2005. On a reported basis, pretax and net earnings grew 7% and 6%, respectively, and diluted earnings per share increased 9%.

FISERV REPORTS STRONG QUARTER...Fiserv, Inc. announced that net income per share-diluted from continuing operations for the third quarter of 2005 was $0.58 per share, compared to $0.53 per share for the third quarter of 2004. Processing and services revenues were $925.3 million, an increase of 10% over the third quarter of 2004. For the nine month period ended Sept. 30, 2005, Fiserv processing and services revenues were $2.7 billion, a 10% increase over the first nine months of 2004.

UNISYS, NEC TO COLLABORATE...NEC Corporation and Unisys Corporation have signed a Memorandum of Understanding to negotiate a partnership to collaborate in technology research and development, manufacturing and solutions delivery. The alliance would cover a number of areas of joint development and solution delivery activities focusing on server technology, software, integrated solutions and support services.

ICT GROUP HAS RECORD QUARTER...ICT GROUP, INC. reported revenue for the third quarter increased 24% to a record $99.9 million compared to $80.4 million in last year's third quarter. Net income was $5.5 million, or $0.42 per diluted share, compared to $276,000 or $0.02 per diluted share, in the prior year period.

CERIDIAN REPORTS SOLID QUARTER...Ceridian Corporation reported third quarter 2005 net earnings of $25.7 million, or $.17 per diluted share, on revenue of $364.1 million. For the third quarter of 2004, net earnings were $10.9 million, or $.07 per diluted share, on revenue of $328.7 million. For the nine months ended September 30, 2005, net earnings were $81.2 million, or $.54 per diluted share, on revenue of $1,079.5 million versus net earnings were $25.9 million, or $.17 per diluted share, on revenue of $959.1 million for same period last year.

PEROT EXPANDS INTO GOVERNMENT HEALTHCARE...Perot Systems Corporation announced its expansion into the government healthcare sector with the appointment of Kevin McFarling as president of its newest wholly-owned subsidiary, Perot Systems Government Healthcare Solutions.

LUXOFT IS SILVER SPONSOR OF GARTNER EVENT...LUXOFT, Russia's leading software developer and IT services exporter, is a Silver Sponsor of the Gartner Global Sourcing Summit, Nov. 1-3, 2005 in San Diego.

New Business

M2 Communications, a sales outsourcing firm for the telecommunications industry, has selected Siebel CRM OnDemand as its strategic CRM platform. Based in Gilbert, AZ, M2 Communications provides sales force outsourcing designed to increase sales performance for telecommunications and technology companies.

Mid America Bank is now using the UniFi PRO Mortgage eX loan origination system's integration of Fiserv's Nautilus Enterprise Content Management (ECM) system to compress loan processing time.

CACI International Inc. has been awarded two new prime, one-year contracts, valued at a total of $19.8 million, to provide managed network services for the Office of the Secretary of Defense (OSD).

Alliances

The Hackett Group and EquaTerra announced an exclusive alliance designed to demonstrate how executives can improve the efficiency and effectiveness of their business functions through a blend of service delivery alternatives such as shared services, offshoring, and outsourcing.

Docucorp International has signed a marketing agreement with Indus International to provide utilities with complementary technologies for a comprehensive, end-to-end bill design, production and delivery solution.

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October 20, 2005

Top Stories

OUTSOURCING CONTRACT VALUES DOWN...The TPI Index, a quarterly report on the state of the global outsourcing industry for financial analysts, media and sourcing industry participants, says third-quarter results indicate an expected decrease of 10 to 15 percent in total dollar value for outsourcing contracts awarded in 2005, to US$60 to $65 billion from an average of US$72 billion awarded in recent years. To date, the year's total contract value (TCV) is US$43.8 billion for transactions signed in the Americas (US$21.3B), Europe (US$20.3B) and Asia (US$2.2B), compared to a global total of US$52 billion this time a year ago.

IT ORGANIZATIONS IN PERIOD OF CHANGE...IT organizations are in a period of radical change. By 2011 at least 75 percent of IT organizations will change their role, at least 10 percent will be disbanded and 10 percent more will be relegated to commodity status, according to Gartner Inc.

NEW CEO AT NORTEL...Nortel Networks Corporation appointed Mike S. Zafirovski as president and chief executive officer (CEO). Zafirovski will succeed Bill Owens as president and CEO on November 15th, 2005.

New Business

EDS and Guthy-Renker, one of the world's largest direct response
marketers, announced the extension and expansion of the companies'
long-term relationship for business process outsourcing (BPO) services
through 2010. The new agreement is one of EDS' largest BPO agreements to date, and continues EDS' current customer relationship management (CRM) services for Guthy-Renker's U.S. operations and add similar services for its Australia and New Zealand markets. Financial terms of the contract were not disclosed.

Perot Systems Corporation will provide revenue cycle outsourcing solutions to Manassas, Virginia-based Prince William Health System. Under terms of the seven-year agreement, Perot Systems will assume day-to-day operational and administrative responsibility for the business office functions and staff of the 170-bed healthcare delivery system.

Fiserv, Inc. said its IPS-Sendero unit - a provider of technology solutions and education for enterprise risk, customer relationship and corporate performance management - announced today that HSBC has completed the purchase and successful implementation of IPS-Sendero A/L for its Australia Banking Group. IPS-Sendero A/L is a risk management solution offered by IPS-Sendero for financial institutions worldwide.

180s, LLC, a Baltimore-based maker of innovative performance wear, is using SPS’ software-as-a-service offering to replace its existing EDI software application. The hosted service enables 180s to continue to electronically transact business with more than 50 retail customers while reducing its EDI staff by more than 50 percent, minimizing VAN charges and eliminating all internal EDI-related hardware and software maintenance and upgrades costs.

New Services

Smart Document Solutions, LLC has launched SmartWorks, a new staffing and management solution designed to ease the burden for HIM departments shifting from a paper-based environment to an electronic medical record (EMR) system. SmartWorks provides outsourced services to handle all or part of the EMR conversion process that many HIM departments are facing.

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October 13, 2005

Top Stories

ACCENTURE REPORTS RECORD RESULTS...Accenture reported financial results for the fourth-quarter and full fiscal year ended Aug. 31, 2005, with record annual revenues, operating income and earnings per share. Net revenues for the fourth quarter were $3.92 billion, compared with $3.42 billion for the fourth quarter of fiscal 2004. Diluted EPS were $0.38, compared with $0.30 for the fourth quarter of fiscal 2004. For the fiscal year, net revenues were $15.55 billion, compared with $13.67 billion for fiscal year 2004, an increase of 14 percent in U.S. dollars and 10 percent in local currency. Diluted EPS were $1.56, compared with $1.22 for fiscal 2004, an increase of 28 percent and ahead of the company’s expected range of $1.52 to $1.55.

PAYCHEX DECLARES DIVIDEND...Paychex, Inc. has declared an increase in the Company's regular quarterly dividend from $.13 per share to $.16 per share payable November 15, 2005 to shareholders of record November 1, 2005.

SPI TECHNOLOGIES OPENS NEW YORK OFFICE...SPI Technologies has opened its new U.S. headquarters in New York. The company’s New York office will be the central hub for investor relations, legal, marketing, and other corporate activities. SPI currently has nine offices in the U.S., including its recently opened data center in Austin.

NOMINATE NOW FOR THE OUTSOURCING EXCELLENCE AWARDS...Nominations are open for the 2006 Outsourcing Excellence Awards – don’t miss this opportunity to be recognized as the best of the best in the outsourcing industry in this “Oscars of Outsourcing!”  Click here to download the form or go to www.outsourcing-awards for more information. Deadline is November 4, 2005.

New Business

Affiliated Computer Services, Inc. (ACS) has been awarded an additional business process outsourcing (BPO) contract with Wachovia Education Finance, the sixth largest originator and the fourth largest holder of education loans in the U.S. The 5-year contract is valued at $35 million.

TIMCO Aviation Services, one of the largest independent commercial jet maintenance, repair, modification, overhaul, and aircraft storage service providers in the United States, selected Ultimate Software’s UltiPro Workforce Management delivered through its hosted solution, Intersourcing.

HR XCEL, LLC has signed contracts with several new clients. HR XCEL will provide a wide range of services for the new clients, ranging from full human resource outsourcing to benefits administration, payroll administration, employee relations services, time & attendance solutions, COBRA administration, FMLA administration and FSA administration.

New Services

IKON Office Solutions announced the availability of the IKON TRAC Solution(SM) for the company's on-site managed services customers. This web-based enterprise management solution enables online print job management and provides real-time measurement of key performance indicators in an on-site outsourcing environment, where IKON manages copy and print centers, mailrooms and fleets of office devices.

Alliances

CyberShift Inc. has formed an agreement with Ceridian to offer its workforce optimization solutions to select Ceridian Human Resources Outsourcing (HRO) clients.

Advertising Information

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October 06, 2005

Top Stories

ACS NAMES NEW CHIEF EXECUTIVE...Mark King has been named President and new Chief Executive Officer (CEO) of Affiliated Computer Services (ACS). King, who has been with the company since its founding, has served in a variety of top management positions. Most recently, he held the position of President and Chief Operating Officer (COO). Jeff Rich will be leaving the company and vacating his position on the Board to pursue other business ventures.

HEWITT, EXULT MERGER ONE YEAR LATER...A year after Hewitt Associates merged with Exult, Inc., it has strengthened its lead in the HR BPO industry, signing 14 new HR BPO clients and holding a 37 percent market share.1 The firm serves more than 300 companies with benefits outsourcing services and more than 30 companies with HR BPO services.

RESOURCE GROUP GETS $30 MILLION INVESTMENT FROM AIG...AIG Capital Partners, Inc. has made a $30 million investment in The Resource Group International, Ltd. (TRG) through the AIG Global Emerging Markets Fund II, L.P. and affiliates of AIG. Founded in 2002, TRG is a Business Process Outsourcing (BPO) firm, with over $170 million in revenues and more than 4,000 employees in the United States, Canada, Europe, and Asia.

EVERDREAM NAMES CHIEF MARKETER...Ed Mueller has joined Everdream Corporation as chief marketing officer. Mueller will be responsible for maintaining a broad and comprehensive marketing organization that incorporates all functions related to strategy, product management, product marketing, and marketing communications.

TECHTEAM BUYS ROMANIAN FIRM...TechTeam Global, Inc.has purchased all of the outstanding stock of Akela Informatique SRL (Akela), a provider of custom software solutions and off-shore development center outsourcing services headquartered in Bucharest, Romania.

PAYCHEX PROCESSING KATRINA CHECKS...Paychex, Inc. is processing, printing and mailing the first of thousands of disaster relief checks for victims of Hurricane Katrina in Louisiana. Paychex has partnered with the American Red Cross and Hibernia National Bank, the largest banking organization in Louisiana, in this initiative to provide emergency funds to people affected by the disaster.

New Business

Affiliated Computer Services (ACS) announced that effective November 1, 2005, it will move from a subcontractor to primary contractor role in providing network, data center, and telecommunications services to UMass Memorial Health Care, Inc. ACS will also assume responsibility for UMMHC's desktop support and help desk on January 1, 2006.

ACS has also signed a five- year base contract with three one-year options with a total value of $82.5 million, with the State of New Mexico Human Services Department (HSD) for full fiscal agent services.

Progressive Bank, headquartered in Winnsboro, La., has named Fiserv's Information Technology, Inc. (ITI) subsidiary as its new banking technology provider. The $275 million commercial bank offers diversified financial services at six locations and now plans to reach new levels of integration, efficiency and growth by deploying ITI's Premier suite of integrated software.

Per-Se Technologies will provide comprehensive revenue cycle management services to Garland, Texas- based Imaging Consultants of Garland, LLP.

New Services

KARVY, India's largest financial services firm in India, announced the launch of its Business Process Outsourcing (BPO) and Knowledge Process Outsourcing (KPO) subsidiary, KARVY Global Services, Limited (KGS). KARVY services over 350 corporations and 20 million individual investors and is ranked among the top five in all of its business segments

Alliances

Patni Computer Systems Ltd. (Patni), one of India's leading IT services companies, and i2 Technologies, Inc. announced an alliance to provide industry customized solutions using i2 Master Data Management (MDM) solutions. Through this alliance i2 and Patni intend to combine their data management expertise, world class application integration and architecture capabilities, as well as industry specific process knowledge.

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.

Special Event

SourceNet Solutions Product Demonstration
As a market leader in accounts payable outsourcing, SourceNet has consistently demonstrated the ability to help companies reduce their direct operating costs by as much as 40 percent and achieve continuous process improvement. Now a Mellon company, SourceNet will bring its proven solutions to a broader marketplace. SourceNet will host a product demonstration during the Association for Financial Professionals Conference in San Antonio. Between 8 a.m. and 5 p.m. on Monday, October 10, and Tuesday, October 11, a demonstration of SourceNet's accounts payable outsourcing solutions will be offered at The Hilton Palacio del Rio hotel.

To schedule a product demonstration or a meeting with a SourceNet representative during AFP, please call 1-888-236-8930.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

New Services

Ceridian has launched Ceridian Backup Care Solutions powered by Work Options Group.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

August 25, 2005

Top Stories

TOP EXEC APPOINTMENT AT KEANE...Former Wipro senior executive Richard Garnick has joined Keane, Inc. as president of North American Services, reporting to company president and CEO Brian Keane. Garnick will drive sales strategy and delivery execution for Keane’s operations in North America.

PHILIPPINES CALL CENTER INDUSTRY TO GROW...Bong Borja, president of PeopleSupport Inc. (PSPT) and a director of the Call Center Association of the Philippines, told a business forum that the industry is expected to grow seat capacity by 50% to 70% this year after ending 2004 with a total of 45,000 agent seats, equivalent to 72,000 jobs.

NEW DEVELOPMENT HEAD FOR UNICCO...L. Kathie Walsh has joined UNICCO Service Company as director of business development.

HEWITT TO CO-HOST CANADIAN EMPLOYERS CONFERENCE...Hewitt Associates and The Canadian Institute, Canada's leading conference provider, will partner again to host the annual Best Employers in Canada conference. The event will be held in Toronto on April 25 and 26, 2006.

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.

New Business

Unisys Corporation has signed a contract extension to manage call center services for Compañía Anoníma Nacional Telefonos de Venezuela (Cantv). Valued at approximately $12 million over two years, Unisys will continue to provide services ranging from operator assistance to customer service.

Fifth Third Asset Management selected BISYS to administer its separately managed accounts (SMA) program.

Angelo Iafrate, one of the largest heavy construction companies in the United States, and its affiliate, James Construction Group, have selected Cambridge, a global business process outsourcing provider specializing in claims and loss cost management services, to administer claims and managed care for workers' compensation and general liability for its U.S. operations.

New Services

EquaTerra announced EQuation HRO, a membership-based service specifically designed for buy-side HR executives. EQuation HRO provides members with outsourcing-focused data, benchmarking and performance metrics, as well as access to custom advice, research, and “insider’s intelligence.”

Mellon Financial Corporation's Investment Manager Solutions (IMS) business announced the successful deployment of Redi2 Revenue Manager, an advanced billing technology now on-line as part of the IMS technology platform supporting operations for a principal outsourcing client.

Alliances

Liberata, one of the UK's leading business process outsourcing providers and Gecis, have formed a partnership to offer the UK Life & Pensions market a solution combining Liberata's FSA regulated systems, process and knowledge management capabilities with Gecis' Six Sigma process reengineering capabilities and breadth of offshore experience servicing all of GE's businesses and other blue-chip global corporations.

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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.

August 18, 2005

Top Stories

NORTEL IN KOREAN JOINT VENTURE...LG Electronics and Nortel will form a joint venture to offer telecom and networking solutions in the wireline, optical, wireless and enterprise areas for South Korean and global customers.

FISERV COMPLETES ACQUISITION...Fiserv, Inc. has completed its previously announced acquisition of BillMatrix Corp., a provider of expedited electronic bill payment services that provides billers with an outsourced payment solution that allows their customers to get immediate credit for bills paid online or over the phone using electronic checks, debit cards or credit cards.

CASH INFUSION FOR CONTENT OUTSOURCING FIRM...American Capital Strategies Ltd. has invested $45 million in the recapitalization of TechBooks Inc., a leading electronic content outsourcing firm.

CLIENTLOGIC GROWS IN LATIN AMERICA...ClientLogic has increased its presence in Latin America with the addition of a new customer care site in Panama and the expansion of an existing site in Mexico.

PRSWEB REPORTS...PFSweb, Inc. announced net revenue in the second quarter totaled $84.9 million compared to $80.0 million in the same period last year, an increase of 6%. Net loss for the quarter was $546,000, or $0.02 per basic and diluted share, compared to net income of $479,000, or $0.02 per basic and diluted share, in the second quarter of 2004.

INDIA IS FOR REAL, KATZENBACK SAYS...New research by consulting firm Katzenbach Partners LLC suggests that a set of India-based information technology and outsourcing companies could ultimately lead on a global basis, potentially unseating such giants as EDS, Computer Sciences Corp., Capgemini, Unisys, Perot Systems, Accenture and BearingPoint.

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.

New Business

Unisys Corporation was awarded a contract by Lufthansa Systems, a leading IT service provider for both the airline and aviation industries worldwide. Unisys will provide its Airline Core Systems Solutions (AirCore), which is designed to help airlines streamline reservation processes, reduce costs, enhance customer services and increase sales, to Lufthansa Systems for its more than 40 airline customers globally.

Affiliated Computer Services, Inc. has been awarded a five-year electronic data interchange (EDI) transaction and front-end support services contract with TMG Health, Inc.,a national leader in providing outsourced Medicare, Medicaid, and other business process outsourcing (BPO) services.

New Services

Paychex, Inc. introduced Paychex Premier Human Resources, a comprehensive human resource outsourcing solution that offers full payroll and human resources administration services, along with the expert support of an on-site human resource representative.

Alliances

The National Association of State Auditors, Comptrollers and Treasurers (NASACT) will offer specialized finance and human resources/payroll benchmarking services to all 50 states as well as the District of Columbia and the U.S. territories under a contract signed with The Hackett Group and Accenture.

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.

August 11, 2005

Top Stories

CONVERGYS COMPLETES DELOITTE BPO UNIT ACQUISITION...Convergys Corporation has completed the acquisition of the Finance and Accounting (F&A) Business Process Outsourcing (BPO) business of Deloitte Consulting Outsourcing LLC, a subsidiary of Deloitte Consulting LLP. The merger was announced on June 16, 2005. At that time, Convergys stated the acquisition would be neutral to its 2005 earnings per share.

NEW LOGISTICS BPO FIRM LAUNCHED...Aegis InterWorld Inc., a new company created to address the growing logistics BPO market, was officially launched. The company, which is supported by a private equity investment funded by Essar Group, one of India's largest corporate houses with an asset base of US$ 4.4 billion, says it is the only BPO provider with domain expertise specific to logistics.

COVANSYS EXPANDS IN INDIA...Covansys Corporation has opened a new Global Development Center in Bangalore, India which will consolidate its current Bangalore centers to accommodate its rapidly growing offshore business.

EDS RELEASES CORPORATE SOCIAL RESPONSIBILITY REPORT...EDS released its first Corporate Social Responsibility Report, detailing the company’s global efforts in education, volunteerism, corporate governance and diversity.

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.

Financial Results Wrapup

ARAMARK Corporation reported record sales of $2.8 billion for the 2005 third quarter, up 8 percent from the prior year quarter. Net income increased 11 percent over the 2004 third quarter to $71.4 million and diluted earnings per share increased 15 percent to $0.38.

Hewitt Associates, Inc. reported net revenues (revenues before reimbursements)for the third quarter,increased 29%, to $711.9 million, from $551.8 million in the prior-year quarter. Outsourcing revenues increased 41%, and consulting revenues increased 8%. Reported net income for the quarter was $33.0 million, $0.31 per diluted share, versus $29.9 million, $0.30 per diluted share, in the prior-year quarter.

Nortel Networks Corporation reported revenues of $2.86 billion for the second quarter of 2005 compared to $2.59 billion for the second quarter of 2004 and $2.54 billion for the first quarter of 2005. Net earnings were $45 million, or $0.01 per common share on a diluted basis, compared to net earnings of $16 million, or $0.00 per common share on a diluted basis, in the second quarter of 2004 and a net loss of $49 million, or ($0.01) per common share on a diluted basis, in the first quarter of 2005.

SOURCECORP, Inc. reported revenues for the second quarter of 2005 of $106.5 million and earnings of $0.37 per share from continuing operations.

New Business

Accenture and The Dow Chemical Company have signed a multi-year agreement under which Accenture will continue as a strategic services supplier and will provide a broad range of business application development, implementation and support services to Dow, extending to 2011.

Unisys has signed a contract with Atos Origin, a leading worldwide IT services provider, to provide mainframe technology and services that will give Atos Origin greater flexibility to deliver outsourced services.

Johnson Outdoors Inc. has selected SPS Commerce as its corporate-wide standard for all of its EDI systems, replacing all existing EDI software, and integrating the SPS solution with its Oracle JD Edwards software.

AMI Semiconductor (AMIS) has selected GXS Managed Services as its outsourcing solution for the management of its B2B e-commerce transactions.

Alliances

BindView Corp. and Tata Consultancy Services (TCS) announced a strategic alliance to bring to market IT security compliance solutions that combine TCS' strength in security assessment and services with BindView's product strength in compliance and vulnerability management. TCS intends to offer these services in conjunction with its eSecurity Consulting Services and IT security compliance offerings.

BISYS and Digital Insight Corp. have renewed and expanded their long-standing strategic partnership. BISYS has extended its endorsement of Digital Insight's consumer Internet Banking and Business Banking solutions for community and regional bank clients. In addition, BISYS has integrated two key new Digital Insight products into its suite of outsourced banking services.

Ameriprise Retirement Services (formerly American Express Retirement Services) and Aon Consulting announced a strategic alliance to provide end-to-end defined benefit, defined contribution and retirement education and planning services.

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.

August 04, 2005

Top Stories

WELCOME TO THE NEW OUTSOURCING ALERT

To provide our subscribers with more--and more timely--news and information about the people and companies that are shaping the outsourcing industry, the Outsourcing Center is pleased to announce a partnership with newsletter editor Jerry Bowles and the Custom Publishing Group to bring you Outsourcing Alert on a weekly basis. Each Thursday, Outsourcing Alert will provide you with industry news, including mergers and acquisitions, executive changes, financial results from leading companies, new business wins and so on. We hope you enjoy it and find it valuable. Send any news and press releases to Jerry Bowles. For advertising information, contact Robin Carey at Custom Publishing Group.

H&R BLOCK ACQUIRES AMEX TAX & BUSINESS SERVICES...H&R Block Inc. has signed a definitive agreement to acquire the Tax & Business Services division of American Express for approximately $220 million. It will be combined with H&R Block's RSM McGladrey Business Services Inc. subsidiary.

ACS BUYS SWISS TRANSPORT FIRM...Affiliated Computer Services, Inc. will acquire the Transport Revenue division from Ascom AG, a Switzerland-based communications company. Transport Revenue consists of three business units: transit, parking, and toll collection with office locations across nine countries. The purchase price of approximately USD $100 million will be funded through ACS' existing credit facility.

NEW NAME, EXPANDED ROLE FOR FISERV UNIT...Fiserv Document Solutions will change its name to Fiserv DirectSource to better represent the expanding role the business unit has taken in providing strategic sourcing services for Fiserv and its 16,000 financial industry clients.

Financial Results Wrapup

ServiceMaster announced second quarter 2005 revenues of $1.2 billion, an eight percent increase compared to the prior year. Second quarter earnings per share from continuing operations were $.27, 13 percent above the $.24 reported in 2004. For the six months, revenues of $2 billion were up six percent over the year ago period, and earnings per share from continuing operations were $.31, 11 percent above the $.28 reported in the prior year...Automatic Data Processing, Inc. reported 10% revenue growth, to $8.5 billion, and 15% earnings per share growth for the fiscal year ended June 30, 2005. Pretax earnings grew 12% and net earnings grew 13% compared with last year. Diluted earnings per share of $1.79 increased 15% from $1.56 per share a year ago on fewer shares outstanding...Gartner, Inc. reported results for the second quarter ended June 30, 2005, the company's first period that included operations from META Group, Inc., which Gartner acquired on April 1, 2005. Total revenue for the second quarter of 2005 was $274.6 million, representing a 21% increase from $227.9 million in the second quarter of 2004. GAAP EPS was $(0.01) and normalized EPS was $0.12...Cognizant Technology Solutions Corporation announced revenue for the second quarter increased to $211.7 million, up 53% from $138.7 million in the second quarter of 2004. Net income for the second quarter increased to $36.0 million, or $0.25 per diluted share compared to $23.8 million or $0.17 per diluted share in the second quarter of 2004...ICT GROUP, INC. reported revenue for the 2005 second quarter increased 28% to $97.0 million compared to $75.5 million in the prior-year period. Net income for the second quarter of 2005 was $1.7 million, or $0.14 per diluted share, compared to $350,000, or $0.03 per diluted share, in last year's second quarter...Ceridian Corporation reported second quarter 2005 net earnings of $33.5 million, or $.22 per diluted share, on revenue of $358.0 million. For the second quarter of 2004, the net loss was $2.3 million, or $.02 per diluted share, on revenue of $316.5 million...PeopleSupport reported record revenues of $14.7 million for the second quarter of 2005, an increase of 41% over the second quarter of 2004 and 5% over the first quarter of 2005. Net income was $2.2 million or $0.12 per diluted share, as compared with net income of $1.3 million or $0.09 per diluted share for the second quarter of 2004, representing an increase of 74% year-over-year.

New Business

Hewitt Associates will provide HR business process outsourcing (BPO) services to Wachovia Corporation, one of the nation’s largest financial services providers. Under the new seven-year agreement, Hewitt will provide HR BPO services, including contact center, payroll, learning and benefits outsourcing to more than 90,000 Wachovia employees. As part of the deal, Hewitt will hire approximately 165 Wachovia employees. Financial terms of the deal were not disclosed.

Whirlpool Corporation has selected Convergys as its human resource business process outsourcing provider. With annual sales of over $13 billion and nearly 50 manufacturing and technology research centers around the globe, Whirlpool markets its brands to consumers in more than 170 countries.

Computer Sciences Corporation and Telkom South Africa have been awarded a five-year, $275 million network outsourcing contract with Old Mutual, the largest financial services group in South Africa, and Nedbank, one of the four largest banking groups in South Africa. CSC estimates its share of the revenue to be approximately $125 million.

Land O’Lakes, a national farmer-owned food and agricultural cooperative with annual sales of more than $7 billion, will further modernize its supply chain using SPS Commerce’s hosted EDI services with its independent warehouses by this fall. Currently, Land O’Lakes is teaming with select proprietary and third party warehouses to transition from the existing solution to SPS Commerce’s WebForms service.

The Centers for Medicare & Medicaid Services (CMS) has awarded EDS a contract to continue providing user and production support, systems maintenance and management services for the computer application system used to process Medicare Part B claims. The contract contains a one-year base period with four options years and is valued at $99 million if all options are exercised.

New Services

Jackson & Associates, Inc. introduced a legal service for servicers who outsource REO management to a third-party vendor. Called "embedded outsourcing," the new legal service involves employing an attorney to manage all legal process incident to occupied REO asset recovery--including evictions, post-vesting bankruptcies, and litigation--at no direct cost to the parent servicer.

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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.

July 29, 2005

Top Stories

THE NEW OUTSOURCING ALERT - COMING AUGUST 4

Outsourcing Alert has a new look and--beginning next Thursday, August 4--a much bigger audience. Through an alliance with the Outsourcing Center, we'll be reaching some 45,000 key decisionmakers in the industry every week. For information about how you can join us as a charter sponsor, send us an e-mail.

FISERVE TO ACQUIRE BILLMATRIX CORP.

Fiserv, Inc. announced that it signed a definitive agreement to acquire BillMatrix Corp., a provider of expedited electronic bill payment services. The purchase price is approximately $350 million, and the transaction is expected to close in the third quarter. Fiserve says it expects the transaction to be neutral to earnings in 2005 and slightly accretive to earnings in 2006. Full Story

UNISYS WINS AWARD FROM MICROSOFT

Unisys Corporation has won Microsoft Corporation’s Winning Customer Award for outstanding competitive efforts in the High Performance Computing (HPC) category for a database that helps leading Dutch banks better manage their payments products for greater efficiencies.

Financial Results Wrapup

Automatic Data Processing, Inc. reported 10% revenue growth, to $8.5 billion, and 15% earnings per share growth for the fiscal year ended June 30, 2005. Pretax earnings grew 12% and net earnings grew 13% compared with last year. Diluted earnings per share of $1.79 increased 15% from $1.56 per share a year ago on fewer shares outstanding...Gartner, Inc. reported results for the second quarter ended June 30, 2005, the company's first period that included operations from META Group, Inc., which Gartner acquired on April 1, 2005. Total revenue for the second quarter of 2005 was $274.6 million, representing a 21% increase from $227.9 million in the second quarter of 2004. GAAP EPS was $(0.01) and normalized EPS was $0.12...Cognizant Technology Solutions Corporation announced revenue for the second quarter increased to $211.7 million, up 53% from $138.7 million in the second quarter of 2004. Net income for the second quarter increased to $36.0 million, or $0.25 per diluted share compared to $23.8 million or $0.17 per diluted share in the second quarter of 2004...ICT GROUP, INC. reported revenue for the 2005 second quarter increased 28% to $97.0 million compared to $75.5 million in the prior-year period. Net income for the second quarter of 2005 was $1.7 million, or $0.14 per diluted share, compared to $350,000, or $0.03 per diluted share, in last year's second quarter...Ceridian Corporation reported second quarter 2005 net earnings of $33.5 million, or $.22 per diluted share, on revenue of $358.0 million. For the second quarter of 2004, the net loss was $2.3 million, or $.02 per diluted share, on revenue of $316.5 million...PeopleSupport reported record revenues of $14.7 million for the second quarter of 2005, an increase of 41% over the second quarter of 2004 and 5% over the first quarter of 2005. Net income was $2.2 million or $0.12 per diluted share, as compared with net income of $1.3 million or $0.09 per diluted share for the second quarter of 2004, representing an increase of 74% year-over-year.

New Business

Whirlpool Corporation has selected Convergys as its human resource business process outsourcing provider. With annual sales of over $13 billion and nearly 50 manufacturing and technology research centers around the globe, Whirlpool markets its brands to consumers in more than 170 countries.

First Consulting Group, Inc. has signed a long term information technology outsourcing agreement with Continuum Health Partners in New York City. The contract begins August 1, 2005 and will extend for five years. It is estimated to be worth $10.8 million for the remainder of 2005, and is expected to be in the range of $26.2 million for 2006.

Affiliated Computer Services has been awarded a contract extension with Anthem Blue Cross and Blue Shield. The three-year extension allows ACS to continue providing comprehensive business process
outsourcing (BPO) services for the Indiana Comprehensive Health Insurance Association.

Alliances

Outsource Partners International (OPI), the industry's largest service provider focused solely on finance and accounting outsourcing, and Salis, Inc., a leading state and local tax management services firm focused on sales tax, use tax, and exemption certificate management, announce the formation of a strategic alliance. The companies believe the addition of sales and use tax management to traditional finance and accounting outsourcing will allow this alliance to deliver a comprehensive and flexible solution set that meets the needs of client companies.

Advertising Information

For advertising information and rates, contact Robin Carey of Custom Publishing Group. Tel: (973) 763-2882 or send an email.

July 22, 2005

Top Stories

About Our New Look

Outsourcing Alert has a new look and coming--in a couple of weeks--a much bigger audience. Through an alliance with the Outsourcing Center, we'll be reaching some 45,000 key decisionmakers in the industry every week. For information about how you can join us as a sponsor, send us an e-mail.

Hewitt Forms Japanese Joint Venture

Hewitt Associates has formed a joint venture with Human Link (HLC), a Japanese personnel administration firm established by Mitsubishi Corporation, to capitalize on the growing demand for HR outsourcing services in Japan. The new company, Hewitt HLC, will target multinational enterprises in Japan for human resources services, including personnel, compensation and benefits outsourcing services. Full Story

Financial Results Wrapup

Unisys Corporation reported a second-quarter 2005 net loss of $27.1 million, or a loss of 8 cents per share, compared with second-quarter 2004 net income of $19.4 million, or 6 cents per share...Acxiom Corporation announced first quarter revenue of $310.3 million, up 7 percent from $289.0 million in the first quarter a year ago. Diluted earnings were per share of $.07, down 50 percent from $.14 the year before...Keane Inc.'s revenues for the second quarter were $237.8 million, an increase of 2.6 percent from revenues of $231.7 million in the second quarter of 2004. Net income was $7.0 million, a decrease of 12.7 percent compared to net income of $8.1 million in the second quarter last year...Fiserv, Inc. announced net income per share-diluted from continuing operations for the second quarter of 2005 was $0.59 per share, compared to $0.49 per share for the second quarter of 2004. Processing and services revenues were $913.1 million, an increase of 10% over the second quarter of 2004.

New Business

EDS has been awarded a contract valued at $170 million, if all options are exercised, to implement a new state-of-the-art Medicaid Management Information System (MMIS) for the Commonwealth of Kentucky.

The Los Angeles County Department of Public Social Services (DPSS) has exercised its option to extend the Los Angeles Eligibility, Automated Determination, Evaluation and Reporting (LEADER) contract with Unisys Corporation for two years. The two option years – valued at an estimated $39.7 million – took effect May 2005 and extend the contract through April 2007.

Hewitt Associates will provide comprehensive HR business process outsourcing (BPO) services to Mervyns, a California-based retailer with more than 250 department stores in 13 states. Mervyns represents Hewitt's second HR BPO retail client, joining Circuit City.

Affiliated Computer Services has been awarded a three-year contract to provide student loan servicing for the University of Illinois (UI) System, a preeminent public university consisting of three main campuses in Illinois. ACS will provide comprehensive loan servicing and management applications to support the UI System's federal and private student loan portfolio.

BT has selected Nortel to supply equipment for its range of hosted Business IP (Internet Protocol) telephony services, which are designed to run across BT's 21st Century Network

Ness Technologies, Inc., a global provider of IT solutions and services has been awarded, together with EDS Israel, an outsourcing contract with the First International Bank of Israel (FIBI). The project is valued at approximately $120 million (including hardware) over eight years.

Advertising Information

For information and rates, contact Robin Carey of Custom Publishing Group. Tel: (973) 763-2882 or send an email.

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