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March 30, 2006
Top Stories
ACCENTURE REVENUES UP FOR QUARTER...Accenture reported net revenues for the second quarter, ended Feb. 28, 2006, of $4.10 billion, a 13 percent increase in local currency. GAAP diluted earnings per share were $0.11, including a pre-tax provision for future losses of $450 million related to the company's future deployment of systems for the National Health Service (NHS) in England. Absent the impact of the NHS provision, EPS were $0.38, above the company's previously stated expectations. Outsourcing net revenues were $1.64 billion, or 40 percent of net revenues, an increase of 13 percent in local currency and 8 percent in U.S. dollars.
PAYCHEX REPORTS RECORD QUARTER...Paychex, Inc. announced record net income of $114.5 million, or $0.30 diluted earnings per share, for the three months ended February 28, 2006, a 23% increase over net income of $92.8 million, or $0.24 diluted earnings per share, for the third quarter last year. Total revenues were $430.6 million, a 15% increase over $373.9 million for the same period last year.
PRUDENTIAL CAPITAL FUNDS OASIS OUTSOURCING...Prudential Capital Partners has provided $18 million of mezzanine and equity financing to Oasis Outsourcing, Inc., located in West Palm Beach, Fla., one of the largest professional employer organizations (PEOs) in the United States.
SYMPHONY CERTIFIED GOLD BY MICROSOFT...Symphony Services has attained Gold Certified Partner status in the Microsoft Partner Program with competencies in Custom Development Solutions and Data Management Solutions, recognizing Symphony’s expertise and impact in the technology marketplace.
Posted by jbowles at 03:33 PM
New Business
Affiliated Computer Services, Inc. has been awarded a multi-million dollar information technology outsourcing contract with Burger King Corporation, a global leader in the restaurant industry. ACS will manage Burger King's entire global enterprise server and end-user computing environments, including enterprise server hosting and systems engineering, system management, print and mail services, and end-user computing.
The Florida Department of Law Enforcement (FDLE) has selected Unisys through a competitive bidding process to provide IT services supporting the first phase of FDLE's initiative to integrate vital law enforcement data from some 500 agencies across the state and region.
Colgate-Palmolive Company announced a seven-year agreement with IBM to provide procurement services for designated materials and services worldwide and to provide accounts payable services for Europe and North America.
The American Society for Training & Development has signed a multi-year partnership with Intrepid Learning Solutions to provide training design, development, delivery, and maintenance services for ASTD's certificate program.
Computer Sciences Corporation has won a task order to provide program management and information technology (IT) services to the Office of the Secretary of Defense, Program Analysis and Evaluation (PA&E).
The contract, which has a one-year base period and four one-year options, is valued at $38.8 million if all options are exercised.
Posted by jbowles at 03:33 PM
Alliances
Workscape has formed a strategic alliance with Asparity Decision Solutions, a provider of online decision support and data services for the self-service marketplace to develop tools for Workscape's Outsourced Benefits Administration (OBA) clients.
Posted by jbowles at 03:30 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 03:30 PM
March 23, 2006
Top Stories
R.R. DONNELLEY ACQUIRES OFFICETIGER...OfficeTiger and R.R. Donnelley & Sons Company announced that the two companies have signed a definitive merger agreement in which RR Donnelley, the world's premier full-service global print provider and business solutions company, will acquire OfficeTiger in an all-cash deal.
NAVISITE GETS $70 MILLION LOAN...NaviSite, Inc. has entered into a commitment letter with Silver Point Finance for up to $70 million in a senior secured term loan facility and up to $3 million in a senior secured revolving credit facility. Silver Point Finance structures and provides custom financing to large and middle market companies. In addition, NaviSite has filed a request with the Securities and Exchange Commission to withdraw its registration statement on Form S-2 relating to the proposed public offering of NaviSite's common stock.
SECURITY TOP OUTSOURCING CONCERN...Information security has become a top concern among companies evaluating current and potential outsourcing relationships, according to a new study by management consulting firm Booz Allen Hamilton. Further, companies perceive a significantly higher security risk in working with offshore providers over those in the U.S., due to a lack of trust in legal and regulatory environments in developing countries.
AMBASSADOR SCHNABEL JOINS OPI BOARD...Ambassador Rockwell A. Schnabel has joined Outsource Partners International, Inc.'s Board of Directors. Ambassador Schnabel is currently an Advisory Director of Trident Capital and a co-founder of the firm. He was a Managing Director of Trident Capital from its inception in 1993 until 2001, when he was appointed by the U.S. Department of State to become Ambassador to the European Union.
KENEXA ADDS EVP...Roger Gaston has joined Kenexa as an executive vice president for its Employment Process Outsourcing (EPO) practice. Gaston will be responsible for Kenexa's Employment Process Outsourcing
operations worldwide. Gaston joins Kenexa from recently acquired StorageTek, a $2 billion company with 7,200 employees worldwide that delivers a broad range of storage solutions for digitized data.
Posted by jbowles at 08:08 PM
New Business
Air China has chosen the Unisys Logistics Management System (LMS) to manage its air cargo operations. Under a five-year agreement, Unisys will also be providing hosting and integration services and will be working closely with Air China on the customization of services for the Chinese domestic marketplace, as well as the implementation and cut-over expected in March 2007.
The Transportation Security Administration (TSA) has awarded a multi-million dollar wireless services and equipment management contract to iSYS, LLC, ProfitLine's certified strategic sales partner. Through its partnership with iSYS, ProfitLine will help manage over 8000 wireless devices on an outsourced basis for TSA with an estimated contract valued at $38 million.
Posted by jbowles at 08:07 PM
New Services
Ceridian announced that its Retirement Plan Services unit now provides recordkeeping services for new Roth 401(k) provisions. The new provisions allow 401(k) plan participants to defer a portion of their salary to the plan on an after-tax basis.
Posted by jbowles at 08:07 PM
Alliances
Pegasystems Inc. and Kanbay Incorporated, a subsidiary of Kanbay International, Inc. announced an alliance to develop and deliver business process management (BPM) expertise to financial services organizations.
Convergys Corporation has been accepted into the "BPO Services Powered by SAP" program. Convergys, the largest holder of outsourced SAP licenses in the world, is expanding its 10-year SAP relationship to help accelerate and increase the global growth of its Employee Care business.
Posted by jbowles at 08:07 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 08:06 PM
March 16, 2006
Top Stories
UNISYS LAUNCHES CHINA CENTER...Unisys Corporation announced expansion of its China operations with the launch of a new global sourcing services and technology center in Shanghai. Over the next three years, the company expects to expand global sourcing operations in China beyond Shanghai and employ approximately 1,000 people.
SITEL REPORTS IMPROVED FINANCIAL RESULTS...SITEL Corporation announced preliminary financial results for the fourth quarter and year ended December 31, 2005. Quarterly income was $2.2 million, or 3 cents per share, compared with a loss of $32.5 million, or 44 cents, last year. Setting aside restructuring and impairment charges, its latest earnings were $6.9 million, or 9 cents per share. Revenue gained 20 percent to reach $290.8 million in the fourth quarter. North American business was up 31 percent to $155.9 million, while revenue was up 4 percent in Europe and 9 percent in Singapore, Australia and New Zealand. For the year, Sitel reported a profit of $5 million, or 7 cents per share, from a loss of $27.7 million, or 38 cents, in 2004. Annual revenue climbed 9 percent to $1.04 billion.
MELLON OPENS SAN FRANCISCO OFFICE...Mellon Global Professional Services (GPS) has opened an office in San Francisco as a result of a growing customer base on the West Coast. Located at 525 Market St., the office is headed by Ashish Kapur, a Mellon veteran experienced in helping clients achieve world-class business performance and maximize returns on technology investments. GPS currently has offices in Pittsburgh, Hartford, Boston, Toronto, London and India.
MERGER CREATES CHINA CONNECTION...Darwin Partners Inc., a provider of a range of IT services to Fortune 1000 companies has announced plans to merge with Suzsoft Co., Ltd., a China-based provider of outsourced application development, quality assurance, and localization services. The merger creates a 750-employee information technology firm with offices on both coasts and an outsourced software development facility in China.
TPI/EQUATERRA MARRIAGE OFF...TPI and EquaTerra announced that their merger agreement, signed in February 2006, has been terminated by mutual consent of the parties.
LAST CHANCE! FIRST FORBES/OUTSOURCING CENTER 2006 SPECIAL REPORT CLOSES MARCH 21...The first 2006 Forbes and Outsourcing Center special text/advertising report focused on best practices in managing outsourcing relationships--which will appear in the June 5 issue--closes for advertising reservations next week. (Ad materials are due three weeks later.) 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. A second report will appear in the November 27 issue with an ad close date of September 11. For more information and special rates for Outsourcing Alert subscribers, contact Jerry Bowles.
Posted by jbowles at 02:46 PM
New Business
Computer Sciences Corporation has signed an information technology (IT) infrastructure outsourcing contract with Deutsche Leasing AG, a leading brand-independent leasing company in Germany. The contract is valued at $115 million (95 million euros) over 10 years.
Belo Corp., one of the nation's largest diversified media companies, has awarded IBM a comprehensive, 5 1/2-year outsourcing services contract to manage Belo's information technology infrastructure.
Equant has signed a seven-year contract to provide a complete outsourcing service to Getinge, a leading global provider of equipment and systems to customers within the health care, extended care and pharmaceutical industries and laboratories. The agreement includes data, fixed and mobile voice, hosting, helpdesk and end user equipment support to more than 100 locations in 30 countries worldwide...Equant has also signed an outsourcing contract with Universal Music Group (UMG), the world's leading music company, to transform its current network into a fully managed IP solution.
Affiliated Computer Services, Inc. has signed a three- year contract with the New Hampshire Department of Health and Human Services - Division of Child Support Services (DCSS) to provide child support payment services for the State. Valued at $3.9 million, the contract has two option years and begins in May 2006.
Lionbridge Technologies, Inc. announced a three-year master services agreement with Microsoft. The contract expands the long-standing relationship between the two companies and extends Lionbridge's role as a premier provider of localization, testing, eLearning, and application development services for prominent Microsoft products.
Posted by jbowles at 02:46 PM
Outsourcing Fair in China, June 22-25
An outsourcing fair that will attract the cream of Chinese software outsourcing suppliers is slated to be held in Dalian, China from June 22-25, 2006. The conference, trade fair and exhibition is sponsored by the Government of China. The Minister of Commerce, the Minister of Information Industry and the Minister of Science and Technology as well as other important government officials will attend the fair, which is organized by the City of Dalian and is the only national, China-wide software outsourcing fair to take place in China in 2006.
Dalian, a modern, scenic port city of five million on the Pacific Ocean in North-East China, attracting visitors for its beauty and landscape, will be the backdrop for the fair.
Some specific conference topics include: system software, development platform and tools, application and business software, network security and IT Outsourcing and BPO. This exhibition represents an opportunity for overseas visitors to meet the top decision-makers in industry and government. This is the fourth annual fair. Previous fairs have been well-attended by Japanese and Korean Outsourcing buyers but to date the conference is not well-known to American and European outsourcers. Proceedings are either in Chinese or English with simultaneous interpretation. As well, free English interpretation facilities are available for individual discussions.
Further information about the fair is available on the official website.
As an additional feature of this fair, the City of Dalian, together with a Dalian outsourcing research institute, I-SOMTRI, will organize a 7 or 10-day China tour of Beijing, Shanghai and Xi’an, with one or two days in Dalian to view the fair and to meet CEO’s and businessmen of the leading Chinese outsourcing companies or, possibly, government officials. If you are in the outsourcing business and have an interest in joining such a tour as an individual businessman or as an outsourcing buying group, please contact Gordon Starr at the following e-mail address: gordon@informedia.net.cn.
Posted by jbowles at 02:46 PM
New Services
Employease announced plans to launch a payroll offering targeted at companies with more than 1,000 employees. Employease Payroll will integrate a next-generation payroll offering with the company's on demand HR and benefits solutions. The offering, which will be available in 2007, will include the traditional features associated with payroll service bureaus such as tax filing, tax reporting and direct deposit.
Posted by jbowles at 02:46 PM
Alliances
USi has expanded its global presence into Europe having signed a cooperation agreement with Dutch IT service provider Inter Access. The three-year agreement allows each company to deliver services from the other’s data center to clients with business transcontinental in scope. USi and Inter Access will also jointly explore new market opportunities and further develop their complementary services.
Posted by jbowles at 02:45 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 02:45 PM
March 09, 2006
Top Stories
ACCENTURE ACQUIRES KEY SAVISTA ASSETS...Accenture has agreed to acquire key assets of Savista, expanding the range of bundled, back office business process outsourcing (BPO) capabilities the company offers to include those designed specifically for the middle market – organizations with fewer than 12,000 employees.
BISYS COMPLETES SALES OF INFORMATION SERVICES GROUP...BISYS has completed the previously announced sale of the companies that comprise its Information Services group to Open Solutions Inc. BISYS estimates total proceeds from the sale to be approximately $470 million, subject to final working capital and other adjustments.
CONVANSYS SELLS GOVERNMENT PRACTICE...Accel-KKR, a technology-focused private equity investment firm, and Saber Consulting, Inc., a privately-held, provider of software and services to the public sector, have acquired the State and Local Government Practice of Covansys Corporation in an all-cash transaction valued at up to $40 million.
PEROT SYSTEMS HIRES COUNTERINTELLIGENCE CHIEF...David W. Szady, former FBI assistant director for counterintelligence, has joined Perot Systems Corporation to lead the development and implementation of the company's intelligence sector strategy.
HEWITT OPENS CENTER IN POLAND...Hewitt Associates announced the opening of a new HR outsourcing center in Krakow, Poland.
DEADLINE: 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 04:08 PM
New Business
The California Employment Development Department (Cal EDD) awarded Unisys Corporation a six-year, $31.6 million contract to upgrade and expand the tax engineering and modernization system that Unisys originally implemented in 2000. The system is central to the state's capability to calculate and collect employment taxes.
Affiliated Computer Services, Inc. has been awarded an information technology (IT) support contract with TIC Holdings, Inc. (TICH). TICH is a holding company for a leading heavy industrial construction contractor and other related contractor companies. ACS will provide a comprehensive SAP enterprise resource planning solution, including technology and infrastructure facilities, implementation, technical support and operations, network management, and help desk support services.
Posted by jbowles at 04:07 PM
Alliances
Unisys and NEC have signed a series of alliance agreements to collaborate in server technology, research and development, manufacturing and solutions delivery. The agreements implement the alliance that was first announced on October 25, 2005.
Posted by jbowles at 04:07 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 04:06 PM
March 02, 2006
Top Stories
OFFSHORING FUNDAMENTAL TO FAO...Offshoring has become fundamental to finance & accounting outsourcing (FAO), with every multi-process FAO contract signed in 2004 and 2005 featuring an offshore component. This and other key findings were reported by Everest Research Institute in its FAO Market Update, released today.
PEROT SYSTEMS ACQUIRES ENGINEERING SERVICES FIRM...Perot Systems Corporation has acquired eServ, LLC, a leading provider of high-end product engineering outsourcing services, for $21 million in cash, plus up to $7 million more if certain performance targets are met. The acquisition launches Perot Systems' expansion into outsourced engineering services, broadening the company's suite of BPO services for the automotive, manufacturing and industrial services segments.
CERIDIAN SIGNS 100TH MULTINATIONAL PAYROLL CLIENT...Ceridian reports it has signed its 100th multinational payroll client and now provides multinational payroll outsourcing solutions in 38 countries, across the manufacturing, technology and financial sectors, and other industries.
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 04:56 PM
New Business
Affiliated Computer Services, Inc. has been awarded an information technology (IT) outsourcing contract with MeadWestvaco Corporation (NYSE: MWV), a leading provider of packaging solutions. The 5-year contract is valued at more than $200 million.
Schroders, a global asset management company, has renewed its existing information technology (IT) outsourcing contract with Computer Sciences Corporation for an additional seven years and 10 months. The renewal is valued at approximately $235 million.
Accenture has signed a three-year, $179 million contract extension with the U.S. Department of Education for continued operation and maintenance of the Office of Federal Student Aid's Direct Loan and Pell Grant origination and disbursement processing system.
Accenture will provide Microsoft with credit and collection services in Europe, the Middle East and Africa (EMEA) under a five-year business process outsourcing contract the two companies signed recently. Financial details of the agreement were not disclosed.
Computer Sciences Corporation has expanded its information
technology (IT) outsourcing contract with United Technologies Corporation to include UTC operations in the People's Republic of China. CSC will provide infrastructure support for more than 1,000 desktop computers and help desk, security and e-mail services
for UTC locations in China.
Air Canada has extended contracts for two Unisys air cargo solutions -- Hosting & Integration Services and Cargo Portal Services (CPS) -- for three years. The contract extensions were signed in the fourth quarter of 2005.
Posted by jbowles at 04:56 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 04:54 PM
