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April 27, 2006
Top Stories
FISERV REPORTS STRONG FIRST QUARTER, NAMES NEW CFO...Fiserv, Inc. reported total revenues for the first quarter increased 13 percent to $1,096.7 million compared to $973.1 million in 2005. First quarter earnings per share were $0.64, compared to $0.71 per share in 2005. Adjusted earnings per share were $0.64 for the quarter compared to $0.52 for the first quarter of 2005...Fiserv also announced that Thomas Hirsch will become its new chief financial officer effective July 1, 2006, replacing Kenneth Jensen, who is retiring after 22 years with the company. Hirsch was also named executive vice president and appointed to the management committee, effective May 1, 2006. Jensen, who announced his retirement last November, has agreed to serve as a special consultant to the CEO following his retirement.
EARNINGS ROUND UP...Kelly Services, Inc. announced revenue for the first quarter of 2006 totaled $1.360 billion, an 8.9% increase compared to the $1.249 billion for the corresponding quarter in 2005. Net earnings for the quarter totaled $8.6 million, a 117% increase compared to $3.9 million reported for the first quarter of 2005. Diluted earnings per share were $0.24, an increase of 118% as compared to first quarter 2005 earnings of $0.11 per share...Amdocs Limited reported that second quarter revenue was $601.1 million, an increase of 23.1% from last year's second quarter. Net income was $81.8 million, or $0.38 per diluted share, compared to net income of $74.3 million, or $0.34 per diluted share, in the second quarter of fiscal 2005...Keane Inc.'s revenues for the first quarter were $243.6 million, an increase of 4.9 percent from revenues of $232.2 million for the first quarter of 2005. Net income for the quarter was $5.4 million, a decrease of 25.9 percent from net income of $7.3 million for the first quarter of 2005. Diluted earnings per share (EPS) for the quarter was $.09, compared to EPS of $.11 for the first quarter of 2005...Harte-Hanks, Inc. reported first quarter 2006 diluted earnings per share of $0.29 on revenues of $278.4 million. These results compare to diluted earnings per share of $0.29 on $268.3 million in revenue for the first quarter of 2005...The TriZetto Group, Inc. reported diluted earnings per share (EPS) for the first quarter of 2006 of $0.15, on revenue of $85.3 million. EPS performance was $0.01 better than the high end of the company's guidance range...Ceridian Corporation reported first quarter 2006 net earnings of $36.2 million, or $.24 per diluted share, on revenue of $384.3 million. For the first quarter of 2005, net earnings were $22.0 million, or $.15 per diluted share, on revenue of $357.4 million...EMCOR Group, Inc. reported first quarter income from continuing operations of $7.6 million, or $0.24 per diluted share, more than three times its income from continuing operations of $2.0 million, or $0.06 per diluted share, in the first quarter of 2005. Net income for the quarter was $7.0 million, or $0.22 per diluted share, compared to net income of $1.9 million, or $0.06 per diluted share in the first quarter of 2005...ICT Group, Inc. reported revenue for the first quarter of 2006 increased 20% to a record $113.1 million compared to $94.0 million in last year's first quarter. Net income was $2.8 million, or $0.21 per diluted share, compared to $1.1 million, or $0.08 per diluted share, in the prior-year period.
CONVERGYS WINS CRM MAGAZINE AWARD...Convergys Corporation announced today that CRM magazine selected Convergys as a 2006 Service Leader Award recipient for outsourcing services. This is the second consecutive year that Convergys has received this award.
Posted by jbowles at 04:06 PM
New Business
Swedish airline Malmo Aviation has signed a five-year contract for Unisys to provide outsourced management of the company's IT operations. The five-year agreement has a value to Unisys of 24 million Swedish crowns ($2.9 million). Unisys will assume responsibility for managing Malmo Aviation's central business applications and help desk, and also provide technical support on site.
Intelligroup Inc. announced the signing of a seven-year, $24 million Infrastructure Outsourcing contract with Royal Greenland, which is one of the world's leading groups specializing in fishing, processing, production, marketing and distribution of seafood products.
R.R. Donnelley & Sons Company has been awarded a multi-year contract extension to produce 100% of Thomas Nelson's one and two color soft cover trade books.
Posted by jbowles at 04:05 PM
New Services
IDC introduced two new products from its BPO research practice. The BPO Buyer Trends and Outlook service will explore worldwide purchasing trends in the BPO services marketplace. The Worldwide Services Contracts Analysis: BPO service will examine BPO services deals from both a business process and a core industry perspective.
Posted by jbowles at 04:05 PM
Alliances
Onyx Software Corporation, a CRM vendor, announced a strategic alliance with Cognizant in which Cognizant will provide consulting services for Onyx implementations in rapidly growing vertical markets worldwide, including financial services and healthcare.
Posted by jbowles at 04:04 PM
Advertising Information
Outsourcing Alert reaches 45,000 key decisionmakers a week. For advertising information and rates, contact Peter Bowes. Tel: (508)359-9356 or send an email.
Posted by jbowles at 04:03 PM
April 20, 2006
Top Stories
INFOSYS INCREASES STAKE IN PROGEON...Infosys Technologies Limited announced an agreement with Citicorp International Finance Corporation to acquire its entire holdings in Progeon Limited, a majority-owned subsidiary of Infosys. Progeon is a provider (BPM) services to Global 1000 companies and is among the top 10 third-party BPOs in India. It has over 7,000 employees as of March 31, 2006. Infosys will buy all of Citi's holdings in Progeon (23% on a fully diluted basis) amounting to 8.75 million shares for approximately US$ 115.13 million. The purchase will be paid in cash and the transaction is expected to be completed by July 2006.
LUXOFT ACQUIRES ITCI...Luxoft announced the acquisition of New York City-based IT Consulting International (ITCI), a company which has been providing IT outsourcing, on-site staffing and project management services for Global 500 and middle market businesses since 1993. The combined company will have more than 1,500 employees worldwide, and combined revenue in 2005 of more than $45 million.
IBM EARNINGS IMPROVE IN FIRST QUARTER...IBM announced first-quarter 2006 diluted earnings per common share of $1.08 from continuing operations, compared with diluted earnings of $.85 per share in the first quarter of 2005, an increase of 27 percent. First-quarter income from continuing operations was $1.7 billion compared with $1.4 billion in the first quarter of 2005, an increase of 21 percent. Total revenues for the first quarter of 2006 of $20.7 billion decreased 10 percent (7 percent, adjusting for currency) from the first quarter of 2005.
UNISYS REPORTS LOSS...Unisys reported a first-quarter 2006 net loss of $27.9 million, or 8 cents per share, compared with a first-quarter 2005 net loss of $45.5 million, or 13 cents per share. Revenue for the first-quarter of 2006 increased 2% to $1.39 billion from $1.37 billion in the year-ago quarter.
AON CONSULTING NAMES CEO...Aon Consulting, the human capital and management consulting organization of Aon Corporation announced the appointment of Kathryn Hayley as chief executive officer of Aon Consulting U.S. Hayley, who has more than 25 years of experience in the consulting industry, has been with Deloitte Consulting LLP since 1984, serving in numerous leadership positions.
ACS INTEGRATES HR OUTSOURCING BUSINESSES...Affiliated Computer Services, Inc. has integrated its human resources outsourcing (HRO) businesses to improve service delivery and the company's ability to provide customized solutions. ACS provides HRO services for 3 million people, delivering services from more than 135 global locations in more than 60 countries and supporting 20 languages. ACS has named Howard Fine as Senior Managing Director of the newly integrated HRO business.
EMPLOYEASE PARTNERS WITH GOOGLE...Google has selected Employease as one of the first go to market partners for the new Google OneBox for Enterprise feature of the Google Search Appliance. All Google Search Appliances will be shipped with the capability to work with an uploaded Employease One Box for Enterprise module. Employee directory search is the first module from Employease for this appliance.
Posted by jbowles at 04:05 PM
New Business
The Centers for Medicare & Medicaid Services (CMS) awarded EDS a one-year task order with four additional one-year options, potentially valued at $29 million if all extension options are exercised. The task order is the first to be issued to EDS under the CMS Enterprise Data Center Indefinite Delivery/Indefinite Quantity contract vehicle.
Affiliated Computer Services, Inc. has been awarded a multi-year renewal of its human resources (HR) business process outsourcing (BPO) contract with Lockheed Martin Corporation.
SOURCECORP, Incorporated has been awarded a five year, estimated $31 million, contract from the National Climatic Data Center (NCDC) of the National Oceanic and Atmospheric Administration (NOAA).
Posted by jbowles at 04:03 PM
Alliances
Telcordia Technologies, Inc. and Accenture announced a strategic alliance to build and deliver end-to-end operations support, network management and business support solutions for communications service providers globally. Accenture has also been awarded a multi-year application outsourcing contract to provide Telcordia with applications development support services.
Posted by jbowles at 04:03 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 04:02 PM
April 13, 2006
Top Stories
HP GETS $236 MILLION IT SERVICES CONTRACT FROM AVAGO...Avago Technologies, the largest privately held semiconductor company in the world, has awarded HP a $236 million services contract to provide global information technology services and operations management. Under the ten year agreement, HP will provide application, server, network, desktop and print management, as well as IT help desk services.
ACCENTURE TO ACQUIRE PECASO LTD...Accenture has agreed to acquire Pecaso Limited, a privately held information technology firm specializing in SAP Human Capital Management consulting and integration services for multinational corporations and governments.
CEREDIAN CEO ANNOUNCES RETIREMENT...Ronald L. Turner, chairman, president and CEO, of Ceridian Corporation will retire from the company effective October 1, 2006.
Posted by jbowles at 05:50 PM
New Business
Accenture has signed a seven-year contract to provide IT application development, implementation and support for Unilever across Europe. Financial terms of the contracts were not disclosed.
Cognizant Technology Solutions has expanded its strategic customer partnership with Dow Corning Corporation. Cognizant will implement a large-scale mySAP CRM 5.0 system, which will be tightly integrated with SAP's next generation NetWeaver platform.
CitiStreet is providing full defined contribution and defined benefit administration, along with health and welfare services to American Family Insurance, the nation's third-largest mutual property and casualty insurer. The agreement marks an expansion of the companies' long-standing business partnership; CitiStreet has provided defined contribution benefits outsourcing services to American Family Insurance since 1994.
Hewitt Associates will provide HR business process outsourcing (BPO) services to Catholic Health Initiatives, a national nonprofit health corporation. Hewitt has provided defined benefit outsourcing services to Catholic Health Initiatives since 2001 and benefits consulting services since 1989.
Affiliated Computer Services, Inc. has been awarded a renewed business process outsourcing (BPO) contract with PepsiAmericas. The three-year contract is valued at just under $5 million. PepsiAmericas is the second largest Pepsi bottler in the world with operations in the United States, Central Europe, and the Caribbean.
Equant has 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. The five-year deal, spanning 48 countries, covers all elements of UMG's communications infrastructure, including global WAN and LAN, managed voice and IP Telephony, mobility, web hosting and vendor management.
Posted by jbowles at 05:49 PM
New Services
NewMarket Technology Inc. announced plans to offer United States firms software development and maintenance support services provided by its operations in China. Software development outsourcing to China is projected to be a billion dollar industry. NewMarket launched operations in China last year and subsequently signed over $20 million in contracts with Chinese companies.
Hyrian, a recruitment process outsourcing (RPO) firm, announced it will provide Fortune 500-level RPO services to companies with 100+ employees through its new Hyrian OnDemand division. The company successfully handled 12,000 hires in 48 states last year alone and is on track to fill 20,000 positions this year. Increasingly
Posted by jbowles at 05:49 PM
Alliances
Xerox Corporation and Exstream Software Inc. announced a partnership that will pair Xerox consulting and managed services with Exstream's enterprise personalization software, Dialogue, to help businesses improve customer relationships through the use of customized communications.
Posted by jbowles at 05:49 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 05:48 PM
April 06, 2006
Top Stories
EDS OFFERS $380 MILLION FOR INDIA BPO FIRM...EDS has made a conditional open offer to acquire a majority stake in MphasiS BFL Limited, a leading applications and business process outsourcing (BPO) services company based in Bangalore, India, for 204.5 Rupees (approximately US$4.58) per share in cash, pursuant to Indian securities regulations. This price represents an approximate 30-percent premium to the 26-week average price of MphasiS. The offer is contingent upon EDS acquiring 83 million shares, representing approximately 52 percent of current shares outstanding.
ACCENTURE COMPLETES SAVISTA ACQUISITION...Accenture has completed the acquisition of key assets of Savista, expanding Accenture's range of bundled, back-office business process outsourcing (BPO) capabilities to include those designed specifically for the middle market.
FREEBORDERS EXPANDS EXECUTIVE TEAM...Freeborders announced the expansion of its EMEA team with two executive appointments. Peter Bambridge joins as Vice President of EMEA and Tony King as Vice President of Operations and Delivery, EMEA.
ACS EARNS ISO CERTIFICATION...Affiliated Computer Services, Inc. has earned International Organization for Standardization (ISO) 20000 certification.
Posted by jbowles at 10:59 AM
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.
Getronics has secured over $10 million in contracts with Chevron Corporation over the next two years. Services covered under the contracts include remote management of Chevron's North American network infrastructure, delivery of onsite services in core U.S. locations, as well as support for over 100 additional U.S. sites. In addition, Getronics will provide management and monitoring of SCADA, microwave, and other specialty tower devices for Chevron Pipe Line Company.
UNICCO Service Company, one of North America's largest integrated facilities services outsourcing companies, has received a contract to provide custodial and contractor management services for six Commonwealth of Virginia buildings located in the Capitol Complex in downtown Richmond.
Posted by jbowles at 10:58 AM
New Services
Cognos announced new professional services initiatives for customers to help maximize value, improve performance and drive user adoption. The new professional services initiatives further address the growing demand for large-scale Cognos standardization and performance management deployments among enterprise customers.
Posted by jbowles at 10:57 AM
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 10:55 AM
