« July 2006 | Main | September 2006 »
August 31, 2006
Top Stories
ACCENTURE NAMES NEW OUTSOURCING CHIEF EXECUTIVE...Accenture announced a number of appointments to its executive leadership team, effective Sept. 1, including a new group chief executive for its outsourcing practice and four of its five operating groups. Kevin M. Campbell has been named Group Chief Executive–Outsourcing and will have ultimate responsibility for the development and delivery of Accenture’s application outsourcing, infrastructure outsourcing and business process outsourcing services and solutions.
NETGURU TO MERGE WITH BPOMS...netGuru, Inc. will merge with privately held BPO Management Services, Inc. (BPOMS),a provider of business process outsourcing services, including human resources, information technology, document management, and finance and accounting functions to middle-market companies, and divest its Indian engineering business process outsourcing operations and related assets. The proposed merger would result in BPOMS becoming a wholly-owned subsidiary of netGuru.
Posted by jbowles at 07:45 PM
New Business
Convergys Corporation has signed a 5-year professional services outsourcing contract with VIBO Telecom, Taiwan's leading 3G mobile operator, to manage VIBO's back office operations. Under this new contract, Convergys will continue to manage all aspects of VIBO's customer care and billing systems, extending a contract first signed in 2005.
Telcordia Technologies Inc. and Accenture have been selected by Telemar, one of South America's largest fixed-line and mobile operators, to deliver an end-to-end service fulfillment solution to help enable mission-critical enterprise data services and consumer broadband. The solution is part of Telemar's ambitious, multi-organizational project for transforming its order management and provisioning processes.
Posted by jbowles at 07:44 PM
Closing September 11 - Forbes/Outsourcing Center Special Report
The next 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 07:43 PM
Advertising Information
Outsourcing Alert reaches 50,000 key decision-makers a week. For advertising information and rates, contact Peter Bowes. Tel: (508)359-9356 or send an email.
Posted by jbowles at 07:43 PM
Nominations Open for 2007 Outsourcing Excellence Awards
Outsourcing Center is now being accepting nominations for the 2007 Outsourcing Excellence Awards. The nomination form and instructions are available at www.outsourcing-awards.com. Deadline is October 2, 2006.
Winners in the eight categories in the 2007 award program will be recognized for demonstrating how companies leverage successful outsourcing relationships to address their strategic objectives.
“Since the awards program was launched in 1997, we have studied annually the best outsourcing relationships worldwide,” said Debra Floyd, COO of Outsourcing Center and Awards Program Director. “The winning companies have proven themselves through all facets of outsourcing relationships, including tough challenges and collaborating on creative ideas that yield increased return on investment.
"The awards program assesses the critical information that organizations need to help them understand how to deliver quantifiable business improvements and meet their strategic goals through high-value outsourcing relationships,” added Peter Bendor-Samuel, CEO of Everest Group, a leading business advisory firm and parent company for Outsourcing Center.
For the winners, the awards will include spending an evening on the Forbes Highlander, a 151-foot yacht, enjoying a gourmet dinner under the stars while cruising New York Harbor. The following evening, the winners will receive their awards at the annual elegant, black-tie Awards dinner known as the “Oscars of Outsourcing.”
Through articles in Forbes magazine and in Outsourcing Journal, each of the eight winning relationships will earn industry recognition as one of the top outsourcing relationships in the world.
Information on what makes outsourcing succeed, from past years’ winners of Outsourcing Excellence Awards, is available at www.outsourcing-awards.com.
Posted by jbowles at 09:40 AM
August 24, 2006
Top Stories
ADP ACQUIRES EMPLOYEASE...The Employer Services Division of Automatic Data Processing, Inc. will acquire Employease, Inc., a leading provider of Web-based solutions and outsourcing options for HR and benefits professionals. The agreement follows a successful partnership between Employease and ADP Major Accounts Services, part of ADP Employer Services. The acquisition is expected to further expand ADP's presence within the mid-market to fulfill a growing demand for Software-as-a-Service (SaaS) solutions.
ACCENTURE BUYS NAVISYS, TARGETS INSURANCE BPO MARKET...Accenture will buy NaviSys, a privately held company that specializes in software solutions for the North American life insurance industry. Terms of the transaction, which is expected to close within the next 60 days, were not disclosed. Accenture will maintain and enhance NaviSys’ existing services and leverage NaviSys software to develop new business process outsourcing (BPO) services for life insurers in North America.
DELTA OUTSOURCES IT MANAGEMENT TO IBM...Delta Air Lines and IBM announced a seven year, Information Technology (IT) infrastructure services agreement to help support the airline's ongoing IT needs as it restructures its operations and progresses toward emergence from bankruptcy in the first half of 2007. Under the agreement, IBM will partner with Delta Technology to provide Delta with comprehensive IT mainframe and mid-range services. By outsourcing the airline's IT infrastructure management, Delta will realize a significant cost savings over the term of the agreement. Financial terms were not disclosed.
ACCENTURE NAMES PAMELA CRAIG CFO...Accenture has named Pamela J. Craig chief financial officer, effective Oct. 31, 2006. Craig, senior vice president-Finance, will succeed Michael G. McGrath, who will remain chief financial officer until October 31, 2006 when he will assume the role of International Chairman. As CFO, Craig will report to CEO William D. Green.
EDS HAS NAMED RON VARGO CFO...EDS has named Ron Vargo as executive vice president and chief financial officer effective immediately. Vargo has served as EDS' corporate treasurer since 2004 and interim co-CFO since March of 2006. Vargo will retain his current duties as corporate treasurer on an interim basis.
GENPACT OPENS SECOND CHINA CENTER...Genpact has opened its newest business-process outsourcing center in Changchun, China. It is the company's 23rd operations center and second to be set up in China. The company currently employs 1,750 associates and was named one of China's three "Best BPO" firms by the Chinese Society of Information & Outsourcing in June 2006.
Posted by jbowles at 06:36 PM
New Business
The State of Ohio awarded ACS a contract on behalf of the Ohio Department of Job and Family Services to provide pharmacy benefits management (PBM) services. The 13-month contract is valued at $26.2 million and includes two, two-year options.
Posted by jbowles at 06:36 PM
Closing September 11 - Forbes/Outsourcing Center Special Report
The next 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 06:35 PM
Alliances
Talx Corp., a provider of human resource and payroll services, said has teamed with a division of Automatic Data Processing Inc. to make its employment and income verification service available to ADP's human resource business process outsourcing clients.
Posted by jbowles at 06:32 PM
Advertising Information
Outsourcing Alert reaches 50,000 key decision-makers a week. For advertising information and rates, contact Peter Bowes. Tel: (508)359-9356 or send an email.
Posted by jbowles at 06:32 PM
Nominations Open for 2007 Outsourcing Excellence Awards
Outsourcing Center is now being accepting nominations for the 2007 Outsourcing Excellence Awards. The nomination form and instructions are available at www.outsourcing-awards.com. Deadline is October 2, 2006.
Winners in the eight categories in the 2007 award program will be recognized for demonstrating how companies leverage successful outsourcing relationships to address their strategic objectives.
“Since the awards program was launched in 1997, we have studied annually the best outsourcing relationships worldwide,” said Debra Floyd, COO of Outsourcing Center and Awards Program Director. “The winning companies have proven themselves through all facets of outsourcing relationships, including tough challenges and collaborating on creative ideas that yield increased return on investment.
"The awards program assesses the critical information that organizations need to help them understand how to deliver quantifiable business improvements and meet their strategic goals through high-value outsourcing relationships,” added Peter Bendor-Samuel, CEO of Everest Group, a leading business advisory firm and parent company for Outsourcing Center.
For the winners, the awards will include spending an evening on the Forbes Highlander, a 151-foot yacht, enjoying a gourmet dinner under the stars while cruising New York Harbor. The following evening, the winners will receive their awards at the annual elegant, black-tie Awards dinner known as the “Oscars of Outsourcing.”
Through articles in Forbes magazine and in Outsourcing Journal, each of the eight winning relationships will earn industry recognition as one of the top outsourcing relationships in the world.
Information on what makes outsourcing succeed, from past years’ winners of Outsourcing Excellence Awards, is available at www.outsourcing-awards.com.
Posted by jbowles at 06:00 AM
August 17, 2006
Top Stories
HEWITT ASSOCIATES REPORTS THIRD-QUARTER LOSS...Hewitt Associates reported net revenues (revenues before reimbursements) for the third fiscal quarter declined 2%, to $698.2 million, from $709.5 million in the comparable prior-year quarter. Outsourcing revenues declined 3%, and consulting revenues increased 4%. The net loss for the third quarter was $202.2 million, or $1.88 diluted loss per share, compared with net income of $33.0 million, or $0.31 per diluted share in the prior-year quarter. Last week, the company announced Russell P. Fradin as the company's new chairman and chief executive officer, beginning September 5, 2006. Fradin was previously president and CEO of BISYS which named Robert J. Casale, the chairman of the board, interim president and CEO while the company seeks a permanent successor.
EVEREST VP TO DELIVER KEYNOTE AT FAO WORLD...Phil Fersht, VP Research, Everest Research Institute, will deliver a keynote presentation on the Finance & Accounting Outsourcing Industry at FAO World, a one-day conference in New York on Tuesday, October 31, 2006. FAO World is the only event produced by the publishers of FAO Today magazine, the voice of the $64 billion Finance and Administrative Outsourcing (FAO) market.
OPI NAMES MD FOR BUSINESS DEVELOPMENT, SALES...Outsource Partners International, Inc. (OPI), a leading professional services firm dedicated solely to finance and accounting outsourcing, announced the appointment of George F. Evans as Managing Director. In this role, Evans will have national responsibility for OPI's business development and sales efforts. Evans will be based out of New York and will report directly to Clarence T. Schmitz, OPI's Chairman and CEO.
OFFSHORE IT OUTSOURCING STILL GROWING FAST...The global and U.S. markets for offshore IT services continue to grow at a remarkable rate, driven primarily by U.S. customer demand, according to IDC. IDC predicts that offshore IT services vendors will capture $29.4 billion in worldwide customer spending by 2010, with little sign of a market slowdown.
Posted by jbowles at 08:32 PM
New Business
Capgemini America, Inc. has expanded its relationship with Astellas US LLC in an agreement that focuses on strategic IT systems and support services that will help enable the pharmaceutical company's efficient growth in the United States. Astellas was formed in 2005 with the merger of Fujisawa Pharmaceutical Co., Ltd. and Yamanouchi Pharmaceutical Co., Ltd.
Affiliated Computer Services, Inc. has signed a one- year, $3.7 million contract extension with the State of Colorado's Department of Healthcare Policy and Financing to continue supporting the State's Child Health Plan Plus (CHP+) program.
RightNow Technologies has been selected by Overstock.com to help the online retailer increase the quality and efficiency of customer interactions across all contact centers and communication channels. The company also expects to achieve greater operational efficiencies throughout its multiple global contact centers.
Posted by jbowles at 08:31 PM
Don't Miss the Next Forbes/Outsourcing Center Special Report
The next 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 08:31 PM
Alliances
Aon Limited, a leading insurance broking and risk management specialist, and Xchanging, the business processing services company, have announced a partnership with an initial 10-year service contract, effective from 1 September 2006. As part of the agreement, more than 500 employees, based primarily in Romford, Leicester and Glasgow, will transfer from Aon to Xchanging.
Posted by jbowles at 08:28 PM
Advertising Information
Outsourcing Alert reaches 50,000 key decision-makers a week. For advertising information and rates, contact Peter Bowes. Tel: (508)359-9356 or send an email.
Posted by jbowles at 08:28 PM
August 10, 2006
Top Stories
ARAMARK ACQUIRED BY INVESTMENT GROUPS FOR $8.3 BILLION...ARAMARK Corporation signed a definitive merger agreement under which Joseph Neubauer and investment funds managed by GS Capital Partners, CCMP Capital Advisors and J.P. Morgan Partners, Thomas H. Lee Partners and Warburg Pincus LLC will acquire the world leader in professional services in a transaction valued at approximately $8.3 billion, including the assumption or repayment of approximately $2.0 billion of debt. ARAMARK reported sales of $2.93 billion for the third quarter of 2006, up 5 percent from the prior year quarter. Net income for the quarter was $35.0 million and diluted earnings per share were $0.19.
CIBC RENEWS CONTRACT WITH HP FOR $1.2 BILLION...The Canadian Imperial Bank of Commerce (CIBC) and HP have amended and extended their information technology outsourcing agreement for an additional four years, which will take it to 2013. The total value of the contract is approximately US$1.2 billion over the next seven years. The agreement revises a previous contract initiated in 2002.
ACS REPORTS QUARTERLY, FISCAL YEAR RESULTS...Affiliated Computer Services, Inc., announced fourth quarter fiscal year 2006 revenues of $1.38 billion, an increase of 14% compared to the fourth quarter of the prior year. Fourth quarter reported diluted earnings were $86.9 million, or 73 cents a share, down from $111 million, or 87 cents a share, a year ago. Fiscal year 2006 revenues were $5.35 billion, a 23% increase compared to the prior year. Reported diluted earnings for fiscal 2006 were $2.90, and included certain restructuring charges and other items.
Posted by jbowles at 06:23 PM
New Business
Perot Systems Corporation announced a new 10-year agreement with University Physicians & Surgeons Inc. (UP&S) of Huntington, West Virginia. Under terms of the contract, valued at approximately $80 million, Perot Systems will provide information technology and revenue cycle services. Perot Systems also will fund, implement, and operate the full suite of Allscripts' TouchWorks electronic health record.
Siemens Business Services announced the signing of a multi-year contract, worth 54 million euros ($69 million)under which it will operate the entire IT infrastructure in all locations for Talecris Biotherapeutics. Siemens Business Services will run Talecris’ servers, operate the company’s network and provide desktop services and helpdesk support. In addition, Siemens Business Services will be providing application management services for Talecris.
The Tianjin Payment Document Clearing and Settlement Center (Center) of the People's Bank of China (PBOC) signed a contract to acquire and deploy the Unisys check processing system. The project includes Unisys Network Document Processor (NDP) solutions with a built-in digital signature function that represents the first application of its kind in China, laying the foundation for secured image exchange and check truncation capabilities.
Affiliated Computer Services, Inc. has signed a $19.9 million contract with the South Carolina Department of Health and Human Services (SCDHHS). The contract is for two years and includes options for three, one-year extensions. ACS will provide third-party liability (TPL) insurance verification, benefit recovery, and health insurance program administration services. ACS will also develop a new electronic imaging, workflow, and data entry system.
Siemens Medical Solutions has signed a strategic multi-year agreement to provide information technology (IT) outsourcing and consulting services to Baptist Saint Anthony (BSA) Health System in Amarillo, Texas. Through this strategic agreement, Siemens will provide BSA with one point of accountability for IT support and remotely manage the facility's use of INVISION(R), Siemens' comprehensive health information solution which helps healthcare facilities achieve tangible quality and patient safety outcomes, while forming the basis for an enterprise-wide electronic health record (EHR).
Through a two-year, $21.5 million agreement, Computer Sciences Corporation is developing the Blue Health Intelligence (BHI) data warehouse for the Blue Cross and Blue Shield Association (BCBSA). To date, the warehouse has been piloted at three Blue Cross and Blue Shield (BCBS) plans. Twenty BCBS plans are currently participating in BHI, which is being implemented and tested this year and will be fully operational in 2007.
Kanbay International, Inc. announced that its subsidiary, Adjoined Consulting, has entered into multiple, multi-million dollar, three-year agreements to provide high-end information technology outsourcing solutions, including managed services, hosting and managing business applications in its state-of-the-art data centers for Walter Industries, Inc. and its subsidiary U.S. Pipe and Foundry.
Posted by jbowles at 06:23 PM
Don't Miss the Next Forbes/Outsourcing Center Special Report
The next 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 06:22 PM
Advertising Information
Outsourcing Alert reaches 50,000 key decision-makers a week. For advertising information and rates, contact Peter Bowes. Tel: (508)359-9356 or send an email.
Posted by jbowles at 06:22 PM
August 03, 2006
Top Stories
$118 BILLION IN CONTRACTS UP FOR RENEWAL IN NEXT TWO YEARS...The major outsourcing services providers face a changed marketplace, as many first-generation outsourcing deals, estimated at $118 billion in annualized contract value (ACV), are set to expire in 2006-2008 and new suppliers position themselves aggressively for this business. Approximately one-quarter of these deals have already been renewed, based on confirmation by key suppliers in Q1 2006, but the majority of these contracts, valued at $88 billion, have not.
ADP TO SPIN OFF BROKERAGE AND OUTSOURCING BUSINESSES...Automatic Data Processing, Inc. announced plans to combine its Brokerage Services and Securities Clearing and Outsourcing Services businesses into an independent publicly traded company through a tax-free spin-off. ADP has also appointed Christopher R. Reidy to the position of chief financial officer. Reidy, 49, has over 25 years of varied financial experience, most recently as the controller and chief accounting officer of AT&T Corporation.
EDS SIGNS $150 MILLION IT SERVICES EXTENSION WITH DOLLAR THRIFTY...Dollar Thrifty Automotive Group Inc. and EDS announced the signing of a five-year, $150 million information technology (IT) services extension agreement, with new revenue service to EDS of approximately $125 million. Under the agreement, which commences October 1, 2006, EDS will provide DTG with a range of IT services including applications development and maintenance, network, workplace and storage management, back-up and recovery and mid-range hosting services.
COGNIZANT ANNOUNCES SUCCESSION PLAN...Cognizant Technology Solutions Corporation announced a management succession plan, which will become effective January 1, 2007. Current President and CEO Lakshmi Narayanan will become Vice Chairman of the Board of Directors and current Chief Operating Officer Francisco D'Souza will succeed him as President and CEO and will become a member of the Board of Directors. In addition, Gordon Coburn, currently Chief Financial Officer, will be promoted to Chief Financial and Operating Officer.
GENPACT TO ACQUIRE MONEYLINE...Genpact, a global provider of business services and technology solutions, announced it plans to acquire Irvine, CA- based MoneyLine Lending Services, a specialized provider of end-to-end mortgage origination and fulfillment services.
INTREPID LEARNING CLOSES $11.7 MILLION FUNDING ROUND...Intrepid Learning Solutions, a leading provider of training services, has closed an $11.7 million funding round. The equity financing was led by FTVentures, a private equity firm focused on software and business services, with strong support from existing investors. Intrepid's outsourcing services include: learning strategy and analysis; curriculum design and development; instructor-led training delivery; vendor management; technology administration; and training evaluation, measurement, and reporting.
Posted by jbowles at 07:41 PM
New Business
R.R. Donnelley & Sons Company announced that UK-based Astron, an RR Donnelley company and leading Document Business Process Outsourcing (DBPO) provider, has been awarded a multi-year, $110 million agreement by British Telecom, the leading telecommunication provider in the United Kingdom.
Miller Brewing Company has deployed GXS Managed Services to enable a network of independent distributors of Miller products to conduct e-commerce with retailers.
Posted by jbowles at 07:40 PM
New Services
Symphony Spend Management Solutions, a business unit of Symphony Services, has launched an enhanced version of its Expense Management System (EMS) 11(R), a Web-based application developed to support its outsourced total telecommunications expense management (TEM) offering. The application is available through a hosted or fully outsourced delivery model.
Posted by jbowles at 07:39 PM
Don't Miss the Next Forbes/Outsourcing Center Special Report
The next 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 07:38 PM
Advertising Information
Outsourcing Alert reaches 45,000 key decision-makers a week. For advertising information and rates, contact Peter Bowes. Tel: (508)359-9356 or send an email.
Posted by jbowles at 07:38 PM
