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January 26, 2006
Top Stories
EVEREST GROUP MARKS 15TH YEAR WITH EXPANSION...Everest Group, a leading provider of strategic advisory services that help companies worldwide harness the power of outsourcing, advised on approximately 20 percent of the major outsourcing transactions announced in 2005, which are estimated at $75 billion in total contract value. Everest Group also launched the Everest Research Institute, made a substantial investment in its human resources outsourcing (HRO) practice group in the US and Canada, and expanded its international capabilities with new office openings in London and New York.
ADP REPORTS 9% REVENUE GROWTH IN SECOND QUARTER...Automatic Data Processing, Inc. reported 9% revenue growth, to $2.2 billion, and $0.47 earnings per share from continuing operations for the second fiscal quarter ended December 31, 2005.
ACXIOM REPORTS RECORD QUARTER...Acxiom Corporation announced financial results for the third quarter of fiscal 2006 ended December 31, 2005. Revenue for the quarter was $347.4 million, income from operations was $52.7 million, pre-tax earnings were $44.0 million, and diluted earnings per share (EPS) were $0.31. All represent record quarterly performances in the company’s history.
EDS COMPLETES A.T. KEARNEY SALE...EDS announced it completed the sale of its global consulting subsidiary, A.T. Kearney, to the firm’s management, effective January 23, 2006.
BEARINGPOINT NAMES EMEA CHAIRMAN...BearingPoint, Inc. has named Keith Burgess as the company’s Chairman of Europe, Middle East and Africa (EMEA), a newly created position. In addition to 30 years at Accenture, where he was most recently a Worldwide Managing Partner, Burgess has held several distinguished industry positions in recent years.
FIRST FORBES/OUTSOURCING CENTER 2006 SPECIAL REPORT CLOSES MARCH 21...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.
Posted by jbowles at 04:41 PM
New Business
Triad Hospitals, Inc., Perot Systems Corporation and McKesson Corporation announced a $1.3 billion healthcare information technology initiative to support Triad's clinical excellence and business transformation programs. Perot Systems will support the transformation initiative with an IT outsourcing agreement across all Triad facilities, including Triad's corporate office. The 10 year agreement, with an expected total contract value of $1.2 billion, is highlighted by the implementation of a suite of standardized clinical, financial and enterprise resource planning (ERP) applications. The Everest Group's healthcare practice assisted Triad in several aspects of this landmark agreement, from transaction structure to supplier selection and negotiations.
Pan-American Life Insurance has signed an information technology (IT) outsourcing agreement with CSC to support its U.S. and Latin American operations. CSC estimates the value of the 7.5-year contract to be approximately $27 million.
Affiliated Computer Services, Inc. has been awarded a business process outsourcing (BPO) contract to process student loans with KeyBank National Association. KeyBank is one of the nation's largest bank- based financial services companies and the seventh-largest education lender in the United States.
Posted by jbowles at 04:41 PM
New Services
Keane, Inc. announced the successful roll-out of Productivity Insight, its state-of-the-art outsourcing governance and performance management platform on 14 of its applications outsourcing engagements. Productivity Insight combines Keane's best practices, workflow automation, real-time metrics capture and powerful reporting capabilities.
Posted by jbowles at 04:40 PM
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.
Posted by jbowles at 04:40 PM
January 19, 2006
Top Stories
ACS AFFIRMS NO SALE...Affiliated Computer Services announced that recent unsolicited discussions with a group of private-equity investors regarding a possible sale of the company have ended. ACS has been considering alternatives to enhance shareholder value including the discussions with a group of private-equity investors, as well as the possible dual class recapitalization proposal described in the company's September 30, 2005 proxy statement.
MELLON REPORTS FOURTH QUARTER EPS OF $.50...Mellon Financial Corporation reported income from continuing operations of $208 million, or 50 cents per share, in the fourth quarter of 2005. This compares to income from continuing operations of $199 million, or 47 cents per share, in the fourth quarter of 2004, and $196 million, or 47 cents per share, in the third quarter of 2005.
PAYCHEX EXECUTIVE CHANGES...Paychex, Inc. announced the retirement of the company's Vice President of Human Resource Services (HRS) Operations and the appointment of her successor. Additionally, the company named a new Vice President and Chief Legal Officer.
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.
Posted by jbowles at 04:36 PM
New Business
Unisys Corporation has received a contract from Countrywide Financial Corporation, a leading provider of diversified financial services, to provide IT outsourcing services. Under the terms of the three-year agreement, Unisys will provide outsourced management and support services for more than 80,000 devices used by more than 30,000 Countrywide employees at more than 800 sites in the United States.
EDS and United Airlines announced a 10-year information technology (IT) services contract to upgrade the airline’s technology base while reducing its operating costs. EDS will provide desktop, helpdesk and managed services for the airline. In addition, EDS will upgrade all aspects of United’s end-user computing and communications environments in offices, reservations and airports.
Lucent Technologies announced a four-year managed services agreement worth more than $10 million to operate and manage the U.S.-based network facilities of Pacific Crossing Limited (PCL). PCL owns and operates the PC-1 trans-Pacific fiber optic cable, one of the two fastest and largest telecommunications cables between the U.S. and Japan.
Lanier Worldwide, Inc. has signed an agreement with the University of California, the largest public research university system in the world. The five year agreement began May 1, 2005 and covers Lanier digital multifunction products (MFPs) for the University’s 10 campuses, five medical centers, and three National laboratories.
ADP Clearing & Outsourcing Services, Inc., a division of ADP, has been selected by Multi-Bank Securities, Inc. to clear its fully disclosed business. Multi-Bank signed a long term contract with ADP Clearing to support its institutional fixed-income trading and CD underwriting for credit unions.
BISYS will provide Allstate with long-term care products and services to Allstate's national agency sales force of approximately 13,600 exclusive agents and financial professionals.
Posted by jbowles at 04:36 PM
Alliances
Salesforce.com and Tata Consultancy Services (TCS) announced the formation of strategic alliance in which TCS, becomes a global strategic SI partner of salesforce.com, and will develop and deploy on-demand business applications on the salesforce.com AppExchange.
SSA Global announced the deployment of a financial management and human resources solution that is enabling Savista, LLC, a leading provider of Business Process Outsourcing (BPO) services to the mid-market, to offer the first integrated finance and accounting (F&A) and human resources (HR) outsourcing services exclusively for the mid-market.
Posted by jbowles at 04:35 PM
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.
Posted by jbowles at 04:35 PM
January 12, 2006
Top Stories
ACCENTURE REPORTS STRONG FIRST QUARTER...Accenture reported that net revenues for the first quarter of fiscal 2006, ended Nov. 30, 2005, were $4.17 billion, a 12 percent increase over the same period last year. Diluted earnings per share were $0.36, an increase of 20 percent on an options-adjusted basis. Due to discounted share repurchases and redemptions in the first quarter, Accenture revised upward its expectations for EPS for the full fiscal year to the range of $1.52 to $1.57.
INFOSYS THIRD QUARTER PROFIT UP 31%...Infosys Technologies, India's second-largest software developer, reported that its third-quarter profit gained 31 percent. Net income rose to 6.49 billion Indian rupees, or $146 million, in the three months to Dec. 31, from 4.97 billion rupees a year earlier.
NEW CEO AT FEDEX KINKO...Gary Kusin, president and chief executive officer of FedEx Kinko's Office and Print Services, will leave the company at the end of January and be succeeded by Kenneth A. May, executive vice president and chief operating officer.
OPI HITS 1,000-EMPLOYEE MILESTONE...Outsource Partners International, Inc. (OPI), the largest business process outsourcing firm dedicated solely to finance and accounting functions, announced today that it has achieved the major milestone of more than 1,000 employees worldwide.
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.
Posted by jbowles at 03:42 PM
New Business
Perot Systems Corporation announced that Severstal North America, a wholly owned subsidiary of OAO Severstal, Russia's second largest steelmaker, has selected the company to provide full IT outsourcing services as part of a six-year, $53 million Information Technology services contract renewal.
Affiliated Computer Services, Inc. announced that it has been selected by the Zurich transportation authority (Verkehrsbetriebe Zurich, VBZ) to deliver a state-of-the-art automated fare collection system. The contract has a potential worth of CHF 63 million (Swiss francs), or approximately $49 million.
Unisys Corporation has strengthened a seven-year relationship as BT Wholesale's Messaging provider with the announcement of a series of new contract wins, totaling approximately GBP 1.6 million. New elements include the provision of a flexible converged fixed and mobile voicemail service, a new messaging platform for BT corporate customers, and the provision of a celebrity voice that will be used in conjunction with the BT Text Messaging Service.
Affiliated Computer Services, Inc. has been selected by the Metropolitan Transit Authority of Harris County (MTAHC) in Houston, Texas, to install a new contact-less ticketing system for the area's bus and light rail transportation network. Valued at $14 million, the contract calls for the roll out of the new system by the middle of 2006.
Posted by jbowles at 03:42 PM
New Services
BISYS announced it now offers comprehensive hedge fund tax reporting for non-German hedge funds. The offering is in full compliance with the German Investment Act and Investment Tax Act, which took effect on January 1, 2004, overhauling the tax treatment of investments in non-German investment funds.
Posted by jbowles at 03:41 PM
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.
Posted by jbowles at 03:41 PM
January 05, 2006
Top Stories
PAYCHEX ANNOUNCES RECORD QUARTER...Paychex, Inc. announced record net income of $112.6 million, or $0.30 diluted earnings per share, for the three months ended November 30, 2005, a 30% increase over net income of $86.9 million, or $0.23 diluted earnings per share, for the second quarter last year. Total revenues were $399.8 million, a 15% increase over $347.3 million for the same period last year.
FIDELITY NATIONAL FINANCIAL TO ACQUIRE SEDGWICK...Fidelity National Financial, Inc. announced the signing of definitive agreements to acquire Sedgwick CMS Holdings, Inc., an industry leading provider of outsourced insurance claims management services to large corporate and public sector entities.
WIPRO TO ACQUIRE PAYMENTS COMPANY...Wipro Limited has signed a definitive agreement to acquire mPower Inc, a Princeton, New Jersey, headquartered company with a development center in Chennai and MPACT Technology Services, based in Chennai, for an all cash consideration of $28 million.
PFSWEB, ECOST LAUNCH MERGER WEBSITE...PFSweb, Inc. and eCOST.com have launched a new website that provides a central destination for information related to their definitive merger agreement announced November 29, 2005. The website includes a joint letter to shareholders, a PowerPoint presentation and other features that describe the tax-free, share-for-share transaction.
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.
Posted by jbowles at 07:12 PM
New Business
The Transportation Security Administration (TSA) of the U.S. Department of Homeland Security (DHS) has awarded Unisys Corp. a "bridge" contract to continue building, securing and managing the information technology infrastructure for TSA, and for DHS headquarters facility. The contract is an indefinite delivery-indefinite quantity contract with a term of one base year with two one-year options which are exercisable at the discretion of the government. The government's estimated value of the base year is $308 million ($265 million for TSA and $43 million for DHS). The total ceiling value of the three-year period is no more than $750 million.
Affiliated Computer Services has signed a 20-month, $11.6 million contract amendment with the Louisiana Department of Health and Hospitals (DHH), Bureau of Health Services Financing to expand its Personal Care Services (PCS) operation. This is an amendment to ACS' existing contract with DHH that became effective July 2004.
ARAMARK International has expanded its relationship with Airbus Deutschland to provide dining services to approximately 21,000 employees at seven Airbus locations across Germany. Under a five year agreement with sales estimated to total up to $14 million per year, ARAMARK will operate restaurants, kiosks and retail shops, as well as the aircraft manufacturer’s vending and catering operations.
Affiliated Computer Services has been awarded an information technology (IT) outsourcing contract with DriveTime Sales and Finance Corporation, a DriveTime company, who with DT Acceptance Corporation, is the nation's largest used automotive sales and financing company for people with credit issues. The five-year contract is valued at $4.8 million.
APAC Customer Services, Inc., a leading provider of customer interaction solutions, announced that The Minneapolis Star Tribune has selected APAC as its customer care outsourcing partner. The Minneapolis Star Tribune, owned by The McClatchy Company, is one of the top 20 largest newspapers in the nation, serving the Twin Cities for more than 135 years.
Posted by jbowles at 07:12 PM
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.
Posted by jbowles at 07:11 PM
