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May 25, 2006
Top Stories
WAGE INFLATION IN OUTSOURCING MARKETS OVERSTATED...Wages for IT outsourcing (ITO) and Business Process Outsourcing (BPO) services providers in key offshore markets, including India, China and Poland, are increasing on average by 8 to 11 percent per year, which is nearly half of what has been commonly reported, according to new findings by Everest Research Institute. The lower figures reflect in part the efforts that offshore outsourcing suppliers have been making to control rising labor costs.
SYMBIO GROUP ACQUIRES HORIZON SOFTWARE...The Symbio Group, a provider of software development, testing, and globalization outsourcing services, has acquired Horizon Software, Inc. Headquartered in Atlanta, Horizon specialized in providing outsourced development services for web-based applications to U.S. and European clients, such as BellSouth and VeriSign, through its development center in Chengdu, China.
SYMPHONY SERVICES NAMES COO...Symphony Services has promoted Dr. Ajay Kela, former president of its India operations, to the position of chief operating officer (COO) and managing director. Amitava Roy succeeds Ajay as president of Symphony's India operations.
CROSS-SOURCING--FROM INDIA TO NEBRASKA...Xpanxion, an Atlanta-based provider of global software development services, has announced plans to relocate a segment of its software testing operations and quality assurance (QA) program from Pune, India to Kearney, Nebraska. The center is scheduled to open this summer and could ultimately bring dozens of high-tech jobs and hundreds of thousands of dollars in economic development to this rural Nebraska community.
DHL TO EXPAND IN RUSSIA...Deutsche Post World Net, owner of DHL, announced that it will invest 250 Million USD within the next four years to expand its express and logistics business in Russia.
OPI NAMES MARKETING DIRECTOR...Outsource Partners International, Inc. has today named Joanna Meronk its Director of Marketing and Communications. In this newly created position, Meronk will have responsibility for the ongoing development and management of OPI's brand and communications.
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Posted by jbowles at 03:36 PM
New Business
ANA (All Nippon Airways), the seventh largest airline in the world, has chosen the Unisys AirCore reservation and departure control solution suite to propel its business operations into a new, open, Web-based environment. Migration to the new system is scheduled to begin in 2007 and it is expected to be in full production for ANA by 2012.
Unisys Corporation has selected DHL as its global lead provider for service parts logistics. Under the agreement, Unisys will consolidate movement and repair of equipment parts from more than 100 providers into a comprehensive solution, managed by DHL, that will benefit clients to whom Unisys provides technology support and maintenance services.
Accenture has signed a business process outsourcing agreement with Crestline Hotels & Resorts, one of the nation's largest independent hospitality management companies, to manage processes associated with Crestline's human resource, payroll and finance and accounting functions, including accounts payable, general ledger and financial reporting.
Beckman Coulter, a leading manufacturer of biomedical testing instrument systems, tests and supplies, has chosen Kenexa's employment process outsourcing solutions to manage its North American staffing operations.
Posted by jbowles at 03:35 PM
New Services
Empagio announced the beta release of Empagio 6.0, a fully integrated, on-demand HRMS platform designed to help HR organizations become more strategic and customer-focused. Once certified for general release, the Empagio 6.0 platform will be deployed in Empagio's service center supporting its customers in delivery of HR outsourcing services.
Posted by jbowles at 03:35 PM
Alliances
NetSuite, Inc. announced major partnerships with two industry-leading companies in Japan: Transcosmos,Japan's leading outsourced services provider; and Inspire Corporation, a prestigious IT venture capital firm and IT consultancy, headed by industry pundit Makoto Naruke.
Posted by jbowles at 03:34 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 03:34 PM
May 18, 2006
Top Stories
ACS TO ACQUIRE INTELLINEX...Affiliated Computer Services, Inc. has signed an agreement to acquire Intellinex, LLC, an Ernst & Young LLP enterprise and leader in integrated learning solutions. The transaction is expected to close within 30 days and is subject to Hart-Scott-Rodino approval as well as other customary closing conditions.
EDS SHAKES UP EXECUTIVE TEAM...EDS announced that Chief Operating Officer Ron Rittenmeyer will become part of EDS’ Office of the Chairman, led by Chairman and Chief Executive Officer Mike Jordan and including President Jeff Heller. Rittenmeyer will assume responsibility for all day-to-day operations of the company. Steve Schuckenbrock, who has served as co-COO since 2005 and executive vice president of Global Sales and Client Solutions since 2004, will be leaving the company.
DIEBOLD ENDS OUTSOURCING RELATIONSHIP...Diebold, Incorporated will take over implementation and support responsibilities for its Oracle global enterprise resource planning (ERP) system as well as other IT-related functions, effective June 1, 2006. This decision ends the company's previous IT outsourcing agreement with a third-party provider, DC Outsourcing ITO L.P., an affiliate of Deloitte Consulting LLP.
ARAMARK RETAINS OUTSIDE COUNSEL...ARAMARK Corporation announced that the Special Committee of its board of directors has retained Credit Suisse Securities (USA) LLC as its financial advisor and Shearman & Sterling LLP as its legal counsel in connection with the previously announced proposal received by the board on May 1, 2006 from a group of investors led by Joseph Neubauer, Chairman and Chief Executive Officer of the company, to acquire all of the outstanding shares of the company for $32 per share in cash.
NCO GROUP GETS 'GOING PRIVATE' BID...NCO Group, Inc. has received a proposal from Michael J. Barrist, Chairman and Chief Executive Officer of the Company, to acquire all of the outstanding shares of the company for $27.50 per share in cash. Barrist intends to partner in this transaction with One Equity Partners II, L.P.
ACS LEADS IN NEW DEALS IN 2005...Affiliated Computer Services, Inc. heads a list compiled by Gartner Dataquest of the top 10 outsourcing vendors in terms of business process outsourcing (BPO) or information technology (IT) outsourcing contracts announced in 2005. ACS leads the list with 41 announced deals, followed by IBM with 39, CSC with 27, EDS with 24 and Accenture with 18.
MERCER REPORTS CLIENT GROWTH...Mercer HR Services, the outsourcing business of Mercer Human Resource Consulting, added 11 major clients during the first quarter of 2006. Since 2004, Mercer HR Services has shown a steady increase in new business wins, adding 27 new clients in 2004 and 36 in 2005. Over 70 new clients have been added since the launch of the business.
Posted by jbowles at 11:06 AM
New Business
Unisys Corporation has signed a multi-million dollar contract with Cathay Pacific Airways to host the airline's core business applications. The contract is for three years, with an option to extend for another two. Unisys will move Cathay's reservations, departure control, and cargo platforms to the Unisys data center in Rhodes, just west of Sydney.
EDS has signed a $308 million, 81-month contract with the state of Florida to design, develop and implement a new-generation Medicaid Management Information System (MMIS). The EDS Florida interChange system will provide fiscal agent services to Florida's 65,000 Medicaid providers and 2.2 million Medicaid recipients, the fourth largest Medicaid program in the United States.
TechTeam Government Solutions, Inc. has been chosen by the Massachusetts Port Authority (Massport) to deliver network administration and engineering services to support several of its internal networks. TechTeam will provide network administration, switch, router, and microwave link maintenance, as well as technical network engineering and network management services. The estimated contract value is $2.8 million in revenue over the three-year period.
Posted by jbowles at 11:05 AM
New Services
Perot Systems Corporation announced two new industry solutions that leverage the mySAP ERP 2004 application, introduced at SAPPHIRE '06 Orlando, SAP's international customer conference May 16-18. Targeted at mid-sized metal fabricators and chemical producers, the solutions address industry-specific challenges and can accelerate implementation of the mySAP ERP 2004 application. The best practices-based solutions can be implemented for a predictable price, offering an option with a lower delivered cost than the traditional implementation approach.
Patni Computer Systems Ltd. has become one of the first global companies to launch a composite application that has achieved "SAP xApps Certified - Powered by SAP NetWeaver" status. Its Inventory Optimizer solution helps companies in the CPG, pharmaceutical and retail industries lower costs through more efficient disposal of sluggish inventory.
Posted by jbowles at 11:05 AM
Alliances
Axiom Systems and Wipro Technologies, Global IT Services division of Wipro Ltd announced an initiative to further invest in off-shore componentization by establishing a Service Component Factory in Bangalore, India.
Posted by jbowles at 11:05 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 11:04 AM
May 11, 2006
Top Stories
MALAYSIA LAUNCHES MAJOR SSO INITIATIVE...Malaysia has launched a major new initiative designed to raise its profile in the shared services and outsourcing (SSO) industry. An indication of how strategic the plan is for the Asia Pacific nation is the fact that it was unveiled as part of the World Congress on Information Technology 2006 in Austin last week by the Prime Minister himself--Datuk Seri Abdullah Ahmad Badawi. Outsourcing Malaysia will focus on business development, branding and marketing, policies and human resources and capabilities development for SSO companies across Malaysia. The Asia Pacific region and Malaysia in particular are poised to dramatically grow over the next decade as premier Global locations for Shared Services and Outsourcing (SSO), according to a study released in conjunction with the announcement by Frost & Sullivan. Both Dell Computers and Affiliated Computer Services, Inc. are opening facilities in CyberJaya, an Information Technology Park in Kuala Lumpur.
KEANE CEO STEPS DOWN...Brian Keane has resigned as president, chief executive officer and a director of Keane Inc. effective May 10, 2006. Prior to the announcement, the company had received employee allegations relating to Keane's personal conduct. Keane has denied any unlawful behavior. John J. Leahy has been appointed by the board as interim president and CEO, while it conducts a search for a permanent CEO.
ARAMARK EXPANDS IN CHINA...ARAMARK has expanded its presence in China with the completion of its acquisition of Golden Collar, a Beijing-based food service company. Golden Collar, with 1,600 employees, provides food service to more than 60 clients in four major Chinese cities.
ACCENTURE FINALIZES PECASO ACQUISITION...Accenture has completed its previously announced acquisition of Pecaso Limited, a leading information technology firm specializing in SAP human capital management (HCM) consulting and integration services for multinational corporations and governments.
UNISYS NAMES HEAD OF GLOBAL INDUSTRIES...Unisys Corp. named Brian Maloney president of Unisys Global Industries, a new organization that will combine the company's global financial services, commercial and public sector businesses (excluding the U.S. Federal Group) into one group. Maloney will report directly to Unisys CEO Joe McGrath.
SIEMENS NAMES CFO...Siemens Business Services, Inc., announced the appointment of Jeffrey S. Scholl to the post of Chief Financial Officer. As the head of Finance for the North American-based Siemens AG operating company, Scholl will be responsible for financial, IT and procurement functions including financial strategy and reporting.
FREEBORDERS NAMES EVP...Freeborders, a leading technology outsourcing provider from China, announced the appointment of Jim Reesing as Executive Vice President of Global Accounts and Operations.
Posted by jbowles at 12:42 PM
New Business
Ariba has extended its outsourcing agreement with Lucent Technologies, a leading provider of communications systems, services and software. Under the terms of a multi-year, enterprise-wide renewal, Ariba will continue to provide complete management of Lucent's indirect spend in North America and Europe. Ariba has been serving Lucent since 2004.
Unisys Corporation announced that its Venezuelan subsidiary has begun work on a signed contract worth approximately $21 million with Movilnet Telecommunications, C.A., the largest mobile network operator in Venezuela. Under the terms of the two-year agreement which was signed in the fourth quarter 2005, Unisys will provide Movilnet with call center outsourcing services.
PFSweb, Inc. has been selected by Roots Canada Ltd., to provide a comprehensive e-commerce solution throughout Canada, effective immediately. Roots is Canada's leading athletic lifestyle brand offering a wide range of quality apparel, premium leather goods and accessories for men, women and children of all ages.
HP has been chosen as the global service provider for Compuware Corporation's software product fulfillment and supply chain management. The five-year agreement expands a longstanding relationship between the companies.
Australia's Jetstar Airways has renewed its outsourcing agreement for Navitaire's reservations and revenue management systems, enhancing services provided under a previous multi-year contract. The agreement includes new code-share booking and passenger processing capabilities to support Jetstar's recently announced international expansion plans.
Ness Technologies has been awarded a three-year contract by Plan, a global humanitarian child-focused organization. Under the terms of the contract, Ness will provide Plan with software development and support services on the latest Microsoft technologies, required for the first stage of Plan's dynamic new system.
Posted by jbowles at 12:41 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 12:40 PM
May 04, 2006
Top Stories
EDS SIGNS $1.7 BILLION DEAL WITH KRAFT...EDS announced a new seven-year, $1.7 billion global information technology (IT) services agreement with Kraft Foods Inc., the world's second-largest food and beverage company. To support Kraft's global operations, EDS will provide a broad range of IT services including data centers, hosting, telecommunications and workplace support services.
ARAMARK GETS 'GOING PRIVATE' OFFER...ARAMARK Corporation announced that its Board of Directors has received a proposal from a group of investors led by Joseph Neubauer, Chairman and Chief Executive Officer of the Company, to acquire all of the outstanding shares of the Company for $32 per share in cash. The Board has formed a Special Committee of independent directors to consider the proposal.
COVANSYS SELLS STAKE IN SUBSIDIARY...Covansys Corporation announced that its wholly owned subsidiary, Covansys India Limited, has entered into an agreement to sell a portion of its ownership in Fortune Infotech Limited to Fidelity National Financial, Inc., a provider of outsourced products and services to a variety of industries. Covansys will own 50.1 percent and Fidelity will own 45.5 percent of the common stock of Fortune Infotech after the sale.
ADP REPORTS REVENUES UP...Automatic Data Processing, Inc. reported 10% revenue growth, to $2.4 billion, and $0.61 earnings per share from continuing operations for the third fiscal quarter ended March 31, 2006.
HEWITT ASSOCIATES REPORTS SECOND QUARTER RESULTS...For the second fiscal quarter, Hewitt Associates reported net revenues declined 3%, to $676.2 million, from $694.0 million in the comparable prior-year quarter. Outsourcing revenues declined 5%, and consulting revenues increased 5%. Net income for the second quarter increased 17%, to $31.8 million, or $0.29 per diluted share, compared with $27.2 million, or $0.23 per diluted share in the prior-year quarter.
CERIDIAN NAMES SVP FOR BENEFIT SERVICES...Ceridian has named John Shade senior vice president, Ceridian Benefit Services. Shade was most recently the Chief Information Officer for UnitedHealth Group's Definity Health business, the largest consumer-driven health care organization in the industry.
PEROT SYSTEMS REVENUES GAIN...Perot Systems Corporation announced financial revenue for the first quarter was $542 million, an increase of 15% year-to-year over first quarter 2005 revenue of $473 million, and includes $18 million of revenue growth, equal to four percentage points, from acquisitions completed during the past twelve months. Earnings per share (diluted) was $.19.
Posted by jbowles at 02:31 PM
New Business
Computer Sciences Corporation has signed a next generation information technology (IT) outsourcing services agreement with BAE Systems, the premier transatlantic defense and aerospace company. The new contract replaces the existing agreement that would otherwise expire in October 2006. The five-year contract is valued at approximately $1.9 billion.
Affiliated Computer Services, Inc. has signed a four-year, $100 million contract renewal with the State of Mississippi's Division of Medicaid.
Ariba, Inc. has been selected to provide outsourcing services by V&M STAR, North America's leading producer of seamless tubular products. Under the terms of the agreement, V&M STAR will use Ariba to manage indirect spend across 14 categories and drive its annual savings goals.
Global Transaction Services, a business unit of Citigroup Corporate and Investment Banking, has been selected by Federated Investment Counseling to be the service provider for the investment manager's retail separately managed accounts (SMA) business. Initially, this mandate involves 6,000 retail accounts totaling approximately $2 billion in assets under management.
Cognizant Technology Solutions has been selected by Publishers Circulation Fulfillment, Inc. (PCF) to deploy a complete end-to-end SAP IS-Media solution across the company's internal and external operations.
Posted by jbowles at 02:31 PM
New Services
TippingPoint, a division of 3Com, launched a managed security service (MSS) for its TippingPoint Intrusion Prevention Systems (IPS), enabling enterprises to cost-effectively outsource and centralize the 24x7 management and monitoring of global, multi-site IPS deployments for a complete view of the organization's security health.
Posted by jbowles at 02:31 PM
Alliances
SAS has partnered with RSM McGladrey, Inc. to provide midmarket commercial and public organizations with the benefits of financial domain expertise, business process consulting, and the power of SAS Financial Intelligence technology.
Wipro Technologies has entered into a strategic alliance with salesforce.com, inc. The alliance will focus on enterprise customer adoption of on-demand computing, spanning on-demand application consulting and implementation services, lifecycle management and support services, and in particular the salesforce.com AppExchange.
Integrien Corporation announced a unique partnership with MphasiS, a leading provider of IT and business process outsourcing services. Under terms of the agreement, MphasiS becomes one of Integrien's core development partners and will sell and implement Integrien's flagship integrity management solution, Integrien Alive, on a global scale.
Posted by jbowles at 02:30 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 02:30 PM
