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June 29, 2006
Top Stories
EDS WINS $700 MILLION BANK OF AMERICA DEAL...EDS announced a six-year, $700 million agreement to integrate the communications infrastructure for recently acquired MBNA Corporation into Bank of America's state-of-the-art voice and data network. Once the integration is complete, Bank of America's voice and data network will connect more than 200,000 associates in 5,800 retail banking centers and 50 contact centers. te network will span 30 states and the District of Columbia, linking 16,700 ATMs while facilitating Internet and telephone banking services.
PAYCHEX ANNOUNCES RECORD YEAR...Paychex, Inc. announced record net income of $464.9 million, or $1.22 diluted earnings per share, for the fiscal year ended May 31, 2006, a 26% increase over net income of $368.8 million, or $0.97 diluted earnings per share, for the prior fiscal year. Total revenues were $1,674.6 million, a 16% increase over $1,445.1 million for the prior fiscal year.
ACCENTURE TO BUY RANDOM WALK...Accenture will acquire Random Walk Computing, Inc., a technology consulting firm specializing in trading system applications, risk management systems and other technologies for banks, asset managers, exchanges and other financial services institutions. Terms of the transaction, which is expected to close within the next 60 days, were not disclosed.
CONVERGYS EXPANDS HR BPO IN ASIA PACIFIC...Convergys Corporation is expanding its Human Resources Business Process Outsourcing (HR BPO) business in the Asia Pacific region by opening new or expanding existing service centers in Kuala Lumpur, Malaysia; Bangalore, India; Dalian, China; and Singapore. These service centers provide HR business process outsourcing (BPO services to more than 150 global and regional Convergys clients.
HP NAMES MANAGED SERVICES GM...Pablo Sanchez-Lozano has been named senior vice president and general manager of HP's Managed Services business unit within HP Services. With more than 15 years in HP Services, Sanchez-Lozano, 40, brings extensive global business management, sales engagement and finance expertise to his new position. He will report to Steve Smith, senior vice president of HP Services.
ACS HIRES TRANSIT TECHNOLOGY GURU...Michael Nash has joined Affiliated Computer Services, Inc. as Vice President of Transit Technology Solutions. Nash brings more than 20 years experience successfully managing large projects and transit operations in the global transportation industry with consumer, commercial, and government clients. Nash will be responsible for shaping the strategic direction of the business with a major focus on escalating ACS' market share worldwide.
ACCENTURE OPENS DELIVERY CENTER IN SAN ANTONIO...Accenture is opening a delivery center in San Antonio, Texas, that will provide business process outsourcing services to clients in Texas and around the world. The center will employ approximately 350 professionals, bringing the number of Accenture employees in Texas to nearly 3,500. The company currently has offices in Dallas, Austin and Houston.
PLAN NOW F0R THE SECOND 2006 FORBES/OUTSOURCING CENTER SPECIAL REPORT...The second 2006 Forbes/Outsourcing Center special text/advertising report focused on best practices in managing outsourcing relationships will appear in the November 27 issue of Forbes magazine with an advertising 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. You can view the first 2006 report in pdf format online here. For more information and special rates for Outsourcing Alert subscribers, contact Jerry Bowles.
Posted by jbowles at 07:36 PM
New Business
Computer Sciences Corporation announced that leading wealth management company AMP Limited has extended its relationship with CSC. The new four-year, $146 million contract extends the two companies’ original engagement, which started in 1993, making it one of the longest running information technology (IT) strategic outsourcing relationships in Australia.
Kenexa Government Solutions, a business unit of Kenexa was awarded the U.S.D.A. Forest Service recruiting contract on May 30, 2006. The U.S. Department of Agriculture Forest Service is a Federal agency that manages public lands in national forests and grasslands.
Posted by jbowles at 07:35 PM
New Services
Siemens Business Services, Inc. announced significant new enhancements to its Infrastructure Management Services offerings. The offerings provide comprehensive data center, remote server management and managed voice services from multiple service delivery centers located across the globe.
Ceridian announced today that in early July it will launch Ceridian Risk Management Solutions, the most comprehensive suite of human resources risk management solutions available for companies with less than 300 employees.
Posted by jbowles at 07:35 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 07:34 PM
June 22, 2006
Top Stories
EDS COMPLETES MPHASIS ACQUISITION...EDS has completed the acquisition of a majority stake in MphasiS BFL Limited, a leading applications and business process outsourcing (BPO)services company based in Bangalore, India. EDS acquired 83 million shares (approximately 52%) of MphasiS for approximately US$380 million in cash. MphasiS will operate as an independent EDS company. With the addition of MphasiS and current expansion plans, EDS' total India work force is projected to exceed 20,000 by year end.
PEROT SYSTEMS TO OPEN FOURTH CENTER IN INDIA...Perot Systems Corporation plans to expand its resources and facilities in India to a fourth city, Coimbatore, with the opening of a new information technology center there in late summer. The company has operated facilities in India for the past 10 years, continuously expanding in Bangalore, Noida and Chennai.
TELETECH TO ACQUIRE DIRECT ALLIANCE...TeleTech Holdings, a leading global business process outsourcing (BPO)provider, announced a definitive agreement to acquire Direct Alliance Corporation, a wholly-owned subsidiary of Insight Enterprises, Inc., a large information technology provider.
ACS TO OPEN SALT LAKE CITY CALL CENTER...Affiliated Computer Services, Inc. will open a 47,000 square-foot facility in Salt Lake City in mid-August.
PLAN NOW F0R THE SECOND 2006 FORBES/OUTSOURCING CENTER SPECIAL REPORT...The second 2006 Forbes/Outsourcing Center special text/advertising report focused on best practices in managing outsourcing relationships will appear in the November 27 issue of Forbes magazine with an advertising 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. You can view the first 2006 report in pdf format online here. For more information and special rates for Outsourcing Alert subscribers, contact Jerry Bowles.
Posted by jbowles at 06:48 PM
New Business
Unisys Corporation announced that its Brazilian subsidiary will provide IT infrastructure outsourcing services to Brazil's Unibanco, one of the largest financial institutions in Latin America and the third largest private bank in Brazil. The five-year deal has a total potential value to Unisys of approximately $47 million.
Ness Technologies, Inc. has been awarded an outsourcing contract with Israel's Assuta Medical Centers, the largest private organization in Israel providing medical services. The project is valued at $16 million over 8 years.
Tikshoov, the largest provider of outsourced contact center services in Israel, has selected Onyx as its multi-tenant CRM platform. With over 2,500 staff operating 1,800 advanced contact center workstations from six independent locations in Israel, Tikshoov fields more than 200,000 information and sales calls for its clients every day.
Unisys Corporation's Netherlands subsidiary has expanded its relationship with long-time client REAAL Insurance through a new five-year outsourcing contract with a value estimated at $11.6 million (EUR 9.2 million). .
Posted by jbowles at 06:48 PM
Everest Research Institute Research Brief: Do Hewitt's Problems Signal Trouble Ahead for the HRO Industry?
Hewitt Associates sent shock waves through the HRO industry last week when it announced the retirement of its CEO at year end and the resignation of its president of HRO, effective immediately. At the same time, the company announced that it will be reviewing its guidance for the third quarter and full fiscal 2006 pending a review of its HRO contracts. Wall Street moved Hewitt's stock price down by 8% to a 52-week low on the day on these announcements.
What are the implications of the Hewitt announcements for the industry as a whole? The Everest Research Institute has issued a Research Brief that provides a detailed look at the implications. Michel Janssen, President of Supplier Solutions at Everest Group, and Marc Pramuk, Vice President of Research, HRO, at Everest Research Institute, are available to discuss the report. Click here to download the complete brief.
Posted by jbowles at 06:48 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 06:47 PM
June 15, 2006
Top Stories
HEWITT ASSOCIATES CEO TO RETIRE...Dale L. Gifford, who has served as chief executive officer of Hewitt Associates since 1992, has informed the company's board of directors of his plans to retire as chairman and CEO at the end of December. Hewitt's board is commencing an external search for a successor to Gifford.
ACS AUTHORIZES $1 BILLION STOCK REPURCHASE PLAN...Affiliated Computer Services, Inc. has authorized a share repurchase program of up to $1 billion of its Class A common stock effective immediately. At the current stock price, this program represents about eighteen percent of ACS' total common shares currently outstanding.
SYMPHONY SERVICES ACQUIRES VMOPLUS...Symphony Services has acquired VMOplus, a consulting company that focuses on helping organizations develop and optimize their global and distributed programs.
KEANE SETTLES HARASSMENT CLAIM...Keane Inc. agreed to pay its vice president of marketing $1.1 million to resolve claims of sexual harassment against Brian Keane, the company's former chief executive. Georgina Fisk, the vice president, is resigning her position on June 30. Brian Keane stepped down as CEO in May. The Boston firm also reached an unspecified settlement with an unnamed former employee who had also accused the former CEO of harassment.
GENPACT TO OPEN NEW PHILIPPINE CENTER...Genpact announced it will open its newest business-processing center in the Philippines this summer. Recruiting has begun at the 5,400 sq. metre facility in the Alabang suburb of Manila, where professionals will provide finance & accounting services, customer-service support, collections, and IT services to Genpact's increasing roster of global clients. It is the seventh country of operations for Genpact, formerly known as GE Capital International Services.
PLAN NOW F0R THE SECOND 2006 FORBES/OUTSOURCING CENTER SPECIAL REPORT...The second 2006 Forbes/Outsourcing Center special text/advertising report focused on best practices in managing
outsourcing relationships will appear in the November 27 issue of Forbes magazine with an advertising 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. You can view the first 2006 report in pdf format online here. For more information and special rates for Outsourcing Alert subscribers, contact Jerry Bowles.
Posted by jbowles at 05:21 PM
New Business
Whirlpool Corporation and Accenture have entered into a five-year application outsourcing agreement in which Accenture will provide maintenance and support services for SAP applications related to demand chain, supply chain, HR and finance at Whirlpool’s operations in North America, Latin America, Europe and Asia.
Ness Technologies, Inc. has been awarded a contract by Mizrahi-Tefahot Bank, Israel's fourth largest banking group, worth approximately $4 million, to computerize the bank's provident funds for planholders.
Raytheon Company's subsidiary Raytheon Professional Services LLC (RPS) has begun work on a four-year contract to deliver managed learning services ("Learning Operations") to Pfizer Inc. Financial terms were not disclosed. RPS will provide logistics administration for learning events in the United States and United Kingdom for Pfizer Global Research and Development and Worldwide Development. RPS will also deliver help desk information support to Pfizer learners.
Affiliated Computer Services, Inc. has signed a one- year contract renewal, valued at $5.52 million, with the City of Riverside, California. Under terms of the outsourcing agreement, ACS will deliver information technology (IT) services to support the city's infrastructure, applications, and business objectives. There are five, one-year options for continuing IT services for a total potential contract value of over $30 million.
Fidelity National Information Services, Inc. announced a multi-year outsourcing agreement to provide application support and development services for ING Netherlands' savings products.
Posted by jbowles at 05:21 PM
New Services
Plateau Systems, a provider of software for developing, managing and optimizing organizational talent, announced Plateau OnDemand, which it described as "the industry's first subscription-based talent management solution to deliver best-in-class performance, succession, and learning management capabilities in an affordable, fully managed solution."
Posted by jbowles at 05:20 PM
Alliances
BancTec, a global provider of document and payment processing solutions, has entered an OEM partnership with Cognos, a major provider of business intelligence (BI) and performance management solutions, to provide enhanced analysis and reporting to BancTec's business process outsourcing (BPO) clients.
Posted by jbowles at 05:19 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 05:19 PM
June 08, 2006
Top Stories
EDS SUCCEEDS IN BID FOR MPHASIS STAKE...EDS has succeeded in its efforts to acquire a majority stake of MphasiS BFL Limited, a leading applications and business process outsourcing (BPO) services company based in Bangalore, India. More than the required 83 million shares of MphasiS have been tendered in response to EDS' conditional open offer of Rupees 204.5 per share (approximately US$4.50), which closed on June 5. Total consideration for the transaction that gives EDS a majority stake in MphasiS is approximately US$380 million cash. The transaction is expected to be completed by the end of June, subject to administrative settlement procedures.
ACCENTURE TO PROVIDE GLOBAL HR SERVICES TO UNILEVER...Accenture will provide Unilever with a broad range of human resources services – from recruitment to payroll processing and performance management – in 100 countries under a business process outsourcing contract signed by both companies. The seven-year agreement will begin in July. Financial terms were not disclosed. Accenture will provide services to nearly 200,000 employees in more than 20 languages from delivery centers in Bangalore, Manila, Dalian, Bucharest, Prague and Curitiba.
RSM MCGLADREY FORMS GLOBAL UNIT...RSM McGladrey entered into a strategic agreement with Munich-based RSM Hemmelrath Gruppe, one of Germany's most respected legal and tax firms to create RSM McGladrey UK Ltd., an international tax consulting firm. The new entity will provide the foundation for RSM McGladrey's global international tax and cross-border transaction support business in eight countries.
CAPGEMINI LAUNCHES NORTH AMERICAN BRAND CAMPAIGN...Capgemini has launched the next wave of its brand advertising campaign in the United Sates and Canada. Themed "The Collaborative Business Experience" and designed to reach business and technology decision-makers, this investment in print, airport and online media expands Capgemini's commitment to enhance its market share in North America.
ACCENTURE OPENS NINTH DELIVERY CENTER IN INDIA...Accenture has launched a technology delivery center in Pune, India, for software outsourcing and systems integration services. The facility is Accenture's ninth delivery center in India, and represents further expansion of the company's Global Delivery Network.
KORN/FERRY AUTHORIZES NEW STOCK REPURCHASE...Korn/Ferry International has approved the repurchase of up to $25 million of Korn/Ferry stock in a common stock repurchase program. This program will commence following the completion of the company's $50 million stock repurchase program announced in December 2005, under which approximately $22 million remains authorized.
GENPACT OPENS PHILIPPINES CENTER...Genpact will open its newest business-processing center in the Philippines this summer. It is the seventh country of operations for Genpact, formerly known as GE Capital International Services.
Posted by jbowles at 03:50 PM
New Business
Computer Sciences Corporation has won a task order to develop the Litigation Case Management System (LCMS) for the U.S. Department of Justice (DOJ). The award, which has a seven-month base period and four one-year options, is valued at approximately $42 million if all options are exercised and all incentives are achieved.
EDS is extending its nearly decade long relationship with EBS Dealing Resources, the world's leading provider of trading and market data solutions to the professional FX and precious metals communities. Financial details of the agreement were not disclosed. EDS will provide a range of IT services including management of the company's global network operations, field services and telecommunications.
Affiliated Computer Services, Inc. has signed a major contract with the Los Angeles County Metropolitan Transportation Authority (Metro) to implement and operate a regional transit smart card service center. The contract is for five-years valued at more than $31.5 million with two, two-year options and if exercised, will bring the total contract value to $60 million.
Posted by jbowles at 03:50 PM
New Services
Unisys Corporation announced a major expansion of its open source capabilities with Unisys Open and Secure Integrated Solutions (OASIS), an integrated, certified set of software suites targeted specifically for enterprise class computing based on open standards and supported through Unisys global services and vertical-industry solutions capabilities.
Posted by jbowles at 03:49 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 03:48 PM
June 01, 2006
Top Stories
OUTSOURCING CENTER NAMES EXCELLENCE AWARD WINNERS...Outsourcing Center, the premier source of information on all aspects of outsourcing, including this newsletter, announced today the eight winners of the 2006 Outsourcing Excellence Awards.
The eight winning relationships are:
Best BPO Hughes and ACS
Best ITO Vanguard Car Rental and Perot Systems
Best EU Invista and Freeborders
Best Financial Services Channel Life and Alfinanz
Best Healthcare St. Vincent Health System and Eclipsys
Best Business Challenge Citrix and HP Global Services
Best Offshore Delta Airlines and Wipro
Best Partnership BT and Accenture HR Services
An independent panel of industry experts rigorously reviewed the nominations, which came from companies that spanned the globe. The winners demonstrated outstanding business relationships in all components of their outsourcing engagements. The winners will be honored at a July 26-27 event that includes sailing on the Forbes Highlander Yacht, speaking in an educational morning seminar, participating in a round-table luncheon, and culminating at a black-tie dinner and awards ceremony in New York City.
ACCENTURE OPENS BPO CENTER IN WARSAW...Accenture has opened a new delivery center in Warsaw that will provide business process outsourcing (BPO) services in finance and accounting, supply chain management and human resources. When fully staffed, the delivery center will employ up to 1,000 highly skilled professionals speaking more than a dozen European languages.
UNISYS NAMES REGIONAL DIRECTOR...Unisys Corp. named Nick Wilson as vice president and managing director of the company's United Kingdom, Middle East and Africa regions. Wilson will report to Peter Blackmore, executive vice president and president of Worldwide Sales, Marketing and Technology.
WOMEN PRESIDENTS SEE OUTSOURCING GROWTH...Women presidents of multi-million dollar companies are expecting to see growth in revenues and employees in 2006, according to the Economic Survey conducted by the Women Presidents' Organization (WPO). WPO surveyed its membership and found that respondents expect growth in their businesses to occur through outsourcing and business acquisition.
Posted by jbowles at 08:28 PM
New Business
The city of Minneapolis awarded Unisys Corp. a contract to provide managed services supporting the city's 911 computer-aided dispatch (CAD) system. Unisys will provide support and management services for the server, desktop and network environment on which the system runs to help ensure that this critical system is continually available to city employees so that they can respond to citizens' requests for emergency services. The five-year, fixed-price contract is valued at approximately $6.8 million.
Unisys also announced that it has received a three-year extension of its engagement to provide outsourced IT services to AIG Technologies, Inc. (AIGT), the information technology services provider for member companies of American International Group, Inc. (NYSE: AIG), world leaders in insurance and financial services. The contract extends services Unisys has provided AIGT since 2000.
HOCHTIEF, an international construction service provider, and Accenture have signed a five-year business process outsourcing agreement under which Accenture will manage HOCHTIEF’s sourcing and procurement function throughout Europe. Terms of the contract were not disclosed.
Microsoft Corp. and Group O Companies are announcing a long-term technology and services agreement for Group O to provide marketing, consumer and managed services for Microsoft Worldwide Operations. Group O is a privately held Hispanic-owned firm based in Milan, Ill.,specializing in rebates, call center, application development, printing, mailing, packaging and business process outsourcing services, with 1,200 employees and annual revenues of $240 million.
Affiliated Computer Services, Inc. has been awarded a two-year extension to its business process outsourcing (BPO) contract with AmeriHealth Mercy/Keystone Mercy Health Plan, the largest family of Medicaid managed care health plans serving nearly two million Medicaid members in eight states.
ACS was also awarded a one-year contract renewal with the City of Detroit, Michigan, for parking ticket processing and collections. The total contract renewal is worth $3.7 million.
Fidelity National Information Services, Inc. announced the signing of a multi-year outsourcing agreement with the new Nationwide Bank, a subsidiary of Nationwide Financial Services, Inc. to support the expansion of the company's banking products and services.
First Consulting Group (FCG) announced a multi-million dollar, four-year implementation and operation engagement with Continuum Health Partners' Beth Israel Medical Center in New York which will commence on August 1, 2006.
Posted by jbowles at 08:27 PM
New Services
Digital River, Inc. announced a major release of its global e-commerce platform. The release, which includes an expanded self-service tool set, offers online merchants even more remote control over their outsourced e-commerce sites. The latest enhancements include powerful new site design tools, advanced site testing and optimization capabilities, and more robust merchandising controls.
Posted by jbowles at 08:27 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 08:26 PM
