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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 August 3, 2006 07:41 PM