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July 13, 2006

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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 July 13, 2006 08:01 PM