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July 27, 2006

Top Stories

WNS BEGINS TRADING ON NYSE...WNS (Holdings) Limited, the parent company of WNS Global Services Limited, a leading provider of offshore business process outsourcing (BPO) services, priced its initial public offering of 11,202,708 American Depositary Shares (ADSs) at a price of $20.00 per ADS. The company's ADSs began public trading on the New York Stock Exchange on July 26, 2006 under the symbol "WNS".

CERIDIAN TO SELL MOST OF RETIREMENT PLAN SERVICES BUSINESS...Ceridian Corporation is selling the major portion of its Retirement Plan Services (RPS) recordkeeping and administration business to The Newport Group, a leading retirement services provider based in Heathrow, Florida. Some 1,100 companies for whom Ceridian was providing defined contribution and defined benefit retirement plan administration services will become customers of Newport, effective immediately.

HEWITT ASSOCIATES EXPANDS IN EUROPE...Hewitt Associates is expanding its consulting services in Europe with the launch of a health care practice in the United Kingdom. The new practice will work with companies on all aspects of managing employee health, from developing and implementing health management strategies to advising on health related benefits and services.

OPI APPOINTS NEW EXECUTIVES...Outsource Partners International, Inc. (OPI),announced the appointments of Debra Cash, as Chief Financial Officer, and of David H. Odorizzi, as Managing Director. Cash, who has served as Managing Director for OPI in the Houston office since 2004, will assume the CFO role immediately. Odorizzi, also based out of Houston, will be responsible for managing and further strengthening OPI's client partnerships.

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. p.s. Take a look at my hot new blog Enterprise Web 2.0

Posted by jbowles at 07:42 PM

New Business

Affiliated Computer Services, Inc. has been awarded an expansion of its human resources outsourcing (HRO) contract with The Goodyear Tire & Rubber Company, the world's largest tire company. The expanded agreement adds HRO support for Goodyear's Latin America Region to ACS' existing 10-year contract supporting Goodyear employees in North America.

ACS has also signed a three- year contract renewal, valued at $15.2 million, with the County of Solano, California.

SourceNet Solutions, a Mellon Financial Corporation business, has been selected to provide accounts payable (AP) services for Conseco, Inc. As part of the solution, SourceNet will complete non-purchase order vendor payables and purchase order processing for Conseco.

Posted by jbowles at 07:42 PM

Alliances

Wipro Technologies, the global IT Services arm of Wipro Limited, and Motorola, Inc. announced the formation of a joint venture to deliver world-class capabilities in managed services to public and private network customers. The joint venture, named WMNetServ, will deliver outsourced telecom services to help customers focus on their core business and gain access to capabilities not available internally.

LogicaCMG announced an agreement with Echoworx Corporation to offer email encryption technology as a fully managed service to European organisations who want to expand their suite of value-added security services. Currently, LogicaCMG provides the technological elements of a full information security service: delivery, hosting, management, operation and monitoring of external and internal IT defences.

Posted by jbowles at 07:41 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 07:40 PM

July 20, 2006

Top Stories

IBM EARNINGS UP FOR QUARTER...IBM announced second-quarter 2006 diluted earnings per common share of $1.30 from continuing operations, compared with diluted earnings of $1.14 per share in the second quarter of 2005, a year-over-year increase of 14 percent. Second-quarter income from continuing operations was $2.0 billion compared with $1.9 billion in the second quarter of 2005, an increase of 9 percent. Total revenues for the second quarter of 2006 of $21.9 billion decreased 2 percent as reported and adjusting for currency from the second quarter of 2005, which includes revenue from the divested PC business.

UNISYS ANNOUNCES SECOND QUARTER LOSS...Unisys Corporation reported a second-quarter 2006 net loss of $194.6 million, or 57 cents per share. The results included a pre-tax charge of $141.2 million to cover a planned workforce reduction of approximately 1,900 people. The results compared with a second-quarter 2005 net loss of $27.1 million, or 8 cents per share. Pre-tax pension expense in the second quarter of 2006 was $40.5 million compared with pre-tax pension expense of $45.8 million in the year-ago quarter. Revenue for the second quarter of 2006 declined 2% to $1.41 billion from $1.44 billion in the year-ago quarter. The company also reported "significant progress" in its previously announced cost-reduction efforts.

ePLDT COMPLETES SPI TECHNOLOGIES ACQUISITION...ePLDT has completed its acquisition of SPI Technologies (SPi), a leading business process outsourcing (BPO) company. The purchase price was $158.8 million inclusive of debt. The business combination with SPi will create one of the largest and most diversified operations in the industry with 11,000 skilled employees delivering a wide range of knowledge-based voice and non-voice solutions.

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. p.s. Take a look at my hot new blog Enterprise Web 2.0

Posted by jbowles at 07:29 PM

New Business

AEGON The Netherlands, an important country unit of one of the world’s largest life insurers, has signed an extension to its existing information technology (IT) services contract with EDS for an additional five years. Under the new extension of the contract, EDS will provide a complete package of information and communications technology (ICT) services. These will range from hosting services of Unix-, mainframe- and web-environments to the provision of desktop, storage and local network services. EDS also provides AEGON with services on security, mobility, helpdesk and software packaging.

HCL Technologies Ltd. (HCL), one of India's top global IT services companies, has entered into a 5-year, $70 million multi-service outsourcing deal with Teradyne. The scope of the engagement includes IT Consulting, Application Development and end-to-end Application and IT Infrastructure Management involving datacenter, network, security and help desk services.

The Pennsylvania Public Utility Commission (PUC) awarded Unisys Corp. a contract to develop the commission’s information management and access project (InfoMAP). The 18-month services contract, awarded in March and worth approximately $4.2 million, calls for Unisys to implement an electronic content and case management system that will yield efficiencies in docketing, tracking and sharing information throughout the PUC.

Fiserv Inc. says its Information Technology Inc. (ITI) business unit has signed Innovative Bank, ranked among the top Small Business Administration (SBA) lenders in the U.S., to convert to its Premier core solution. Innovative Bank will convert to the system in October 2006, operating through the Fiserv ITI Outsourcing data center in Chatsworth, Calif.

Affiliated Computer Services, Inc. has entered into a business processing outsourcing (BPO) contract with the Arizona Higher Education Loan Authority (AHELA), a state-designated non-profit organization that provides low-cost education financing solutions for Arizona students and their families. ACS will provide Stafford and PLUS loan origination and servicing for AHELA.

Posted by jbowles at 07:29 PM

New Services

COMSYS IT Partners, Inc. announced the launch of its Recruitment Process Outsourcing (RPO) offering as part of its vWorx service line. RPO provides organizations with an enterprise-wide solution for workforce acquisition and permanent hires. Using a three-tier approach, COMSYS RPO can be administered onsite, offsite or offshore to allow the recruiting process to be distributed across multiple locations.

Posted by jbowles at 07:29 PM

Alliances

Flextronics and Juniper Networks, Inc. announced a global outsourcing relationship whereby Flextronics will provide a portion of new product introduction, manufacturing, and logistics services on a worldwide basis for Juniper's security and networking products.

Posted by jbowles at 07:28 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 07:28 PM

July 13, 2006

Top Stories

IS THE IT OUTSOURCING BOOM OVER...OR NOT...The IT outsourcing boom is over, onshore providers are facing new pressures, and companies are outsourcing more strategically and selectively, according to the "2006 Global IT Outsourcing Study" published by global management consulting firm DiamondCluster International.

Is there a chill over outsourcing in general? Technology Partners International Inc. says that despite more outsourcing deals being signed in the first half of this year - 92 compared with 58 in the comparable period last year - the total revenue from outsourcing contracts won't match last year's $75 billion.

The Hackett Group, a strategic advisory firm, has a different take: "Our analysis, based on in-depth IT benchmarks we have performed at hundreds of Fortune 1000 companies, is that IT outsourcing will continue to increase strongly next year, despite the predictions made by TPI and DiamondCluster."

ACCENTURE BOLSTERS FINANCE AND ACCOUNTING BPO THROUGH ACQUISITIONS...Accenture is enhancing its finance and accounting business process outsourcing (BPO) capabilities by agreeing to acquire two companies that help clients prevent, detect and recover "lost profits" through analysis of payables data and processes. Terms of the agreement with Advantium Inc. of Hudson, Ohio, including its related entity XPAN LLC, and Meridian Informed Purchasing Ltd. of St. Albans, United Kingdom, were not disclosed. Closing is expected within 30 days.

ACS ACQUIRES PRIMAX RECOVERIES...Affiliated Computer Services, Inc. has signed an agreement to acquire Primax Recoveries, Inc., (Primax) one of the industry's oldest and largest health care recovery firms. For the last twelve months, Primax recorded revenues of approximately $39 million. The terms of the acquisition specify a purchase price of $40 million, plus contingent payments based upon future financial performance. ACS funded the acquisition through a combination of cash on hand and existing credit facilities.

TRINET BUYS CUSTOMERS ASSETS OF OUTSOURCE GROUP...TriNet, a nationwide provider of human resource (HR) outsourcing services for small and mid-sized companies, has purchased the customer assets of Outsource Group, a nationwide HR services provider based in Walnut Creek, California. The transaction includes customer contracts for nearly 200 companies and also includes the rights to Outsource Group's name and web site.

EVEREST RESEARCH INSTITUTE WEBINAR ON JULY 25...Everest Research Institute will present a industry-defining webinar that reveals the latest research trends in Finance & Accounting Outsourcing (FAO). The Research Institute’s F&A analyst team is conducting ongoing research of the service providers and buyers of FAO offerings across multi-process F&A domains. The webinar will reveal some early findings from the forthcoming 2006 F&A Outsourcing report, including trends and dynamics from over 160 multi-process FAO contracts. The webinar will take place on July 25, 2006 at the following time: 10:00 AM CDT (USA), 4:00 PM (UK),8:30 PM (India)

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. p.s. Take a look at my hot new blog Enterprise Web 2.0

Posted by jbowles at 08:01 PM

New Business

Hewitt Associates will provide HR business process outsourcing (BPO) services to Centrica plc, a leading utility and energy organization based in the United Kingdom. Under a seven-and-a-half-year contract (including a six-month transition period), Hewitt will provide a full range of HR BPO services, including workforce administration, payroll, customer service, reward management, performance management and succession planning to 30,000 Centrica employees in the UK.

The Centers for Medicare & Medicaid Services (CMS) awarded EDS a task order to provide web hosting services to support all of CMS' outward facing websites. The value of contract will be $41 million if all options are exercised. This is the second task order issued to EDS under the CMS Enterprise Data Center (EDC) $1.9 billion Indefinite Delivery/Indefinite Quantity contract, a multi-vendor vehicle CMS is using to consolidate data center operations. The first task order, awarded in April, was worth up to $29 million.

Affiliated Computer Services, Inc. has signed a two- year, $12 million contract with the Agency for Health Care Administration in Florida to provide choice counseling services in response to Florida's aggressive perspective on addressing Medicaid reform. ACS will provide choice counseling and enrollment broker services for program outreach, education, counseling, enrollment, and dis-enrollment for all Medicaid recipients in a two-year, five-county pilot area.


Posted by jbowles at 08:00 PM

Alliances

24/7 Customer, a global supplier of business process outsourcing services, and LivePerson, Inc., a provider of online conversion solutions, announced a strategic partnership. 24/7 Customer will integrate LivePerson's comprehensive Timpani platform with its customer lifecycle management framework to support and manage all online customer interactions, including live chat, email and self- service/knowledge database.

Posted by jbowles at 08:00 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 07:59 PM

July 06, 2006

Top Stories

ING SIGNS $1 BILLION OUTSOURCING DEAL...The Dutch financial institution ING and a group of outsourcing providers have agreed to a $1 billion, five-year deal covering workplace services for ING's banking and insurance operations in the Netherlands and Belgium. Accenture, Atos Origin, Getronics and KPN will provide installation, maintenance and support for desktops, laptops, printers and telephones, according to an ING statement. ING Group, based in Amsterdam, provides banking, insurance and asset management in over 50 countries.

ACCENTURE REPORTS STRONG THIRD QUARTER...Accenture reported strong financial results for the third quarter of fiscal 2006, ended May 31, with net revenues of $4.41 billion, an increase of 11 percent in local currency over the same period last year, and GAAP diluted earnings per share of $0.56, which include a $0.06 benefit from a $58 million reduction in reorganization liabilities. EPS increased 10 percent on a GAAP basis and 32 percent on an adjusted basis over the third quarter last year.

WNS HOLDINGS FILES FOR IPO...Indian outsourcing firm WNS Holdings intends to raise about $74 million through an initial public offering, according to a filing made with the Securities and Exchange Commission.

ACCENTURE OPENS DELIVERY CENTER IN BUCHAREST...Accenture has opened a new delivery center in Bucharest that will provide business process outsourcing (BPO) services in finance and accounting, human resources and procurement. The Bucharest center will complement Accenture's existing global delivery network of more than 40 delivery centers in more than 20 countries.

FREEBORDERS EXPANDS CHINA FACILITY...Freeborders, a leading technology outsourcing provider from China, has announced plans to quadruple the size of its Shenzhen facility to accommodate 2,000 workers in response to increased demand for outsourced software projects from retail, manufacturing and financial services institutions. This follows the completed expansion of the company's Shenzhen facility in January 2006, which grew the office site to 52,000 square feet.

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 07:26 PM

New Business

EDS has been selected to provide information technology (IT)services to the U.S. Department of Homeland Security (DHS) under the agency's newly awarded Eagle contract. EDS is one of 25 companies in the program's "unrestricted track" that may compete for task orders under the five-year Indefinite Delivery/Indefinite Quantity contract.

Affiliated Computer Services has signed a two-year, $12 million contract with the Agency for Health Care Administration in Florida to provide choice counseling services in response to Florida's aggressive perspective on addressing Medicaid reform. This component of the State's new Medicaid system will use a multi-faceted approach to educate participants and enable them to efficiently navigate their health plan choices.

Buck Consultants, an ACS company and one of the world's leading human resource and benefits consulting firms, has been selected by the Employees' Retirement System of Puerto Rico Electric Power Authority (PREPA) to provide retirement plan administration services. The System covers more than 20,000 active and retired employees.

Posted by jbowles at 07:26 PM

New Services

CitiStreet has established a centralized group focused on client data management. The new CitiStreet Data Management group will help benefit plan sponsors manage all aspects of their benefits administration data, including conversion, cleanup, process consulting and ongoing maintenance and controls. CitiStreet has hired an industry expert in the field, Cort Raithel, to head the team.

Posted by jbowles at 07:25 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 07:24 PM