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October 25, 2006
Top Stories
CAPGEMINI BUYS KANBAY FOR $1.25 BILLON...Capgemini will buy Kanbay International, provider of technology services to financial institutions, for $1.25 billion in a bid to boost its presence in India and the U.S. Under the acquisition deal, Paris-based Capgemini will pay $29 per share in cash for the U.S. consultancy. With the purchase, India becomes the second-largest operation for Capgemini, after France. Kanbay, which has three sites in India, employs more that 5,000 people.
STARBUCKS BREWS DEAL WITH UNISYS...Starbucks Corporation, the world’s leading specialty coffee company, has selected Unisys as its IT infrastructure services partner to simplify the deployment and management of standard IT infrastructure services used in international Starbucks retail stores, support centers, and manufacturing facilities. These services will deliver enhanced support to Starbucks as it expands its presence from over 3,600 to 20,000 stores in international markets.
CAPGEMINI TRANSFERS NIS OPERATIONS TO BT...Capgemini is transferring a substantial portion of the company’s European Networking Infrastructure Services (NIS) operations to BT. BT will engage approximately 250 of Capgemini’s NIS employees in Europe, including the UK and Spain. The company will provide NIS services to Capgemini customers, supplementing transferred Capgemini employees with BT staff.
CONVERGYS REPORTS STRONG QUARTER...Convergys Corporation reported its strongest quarter in three years with record quarterly revenue of $702.7 million, up 9 percent over the prior year. Earnings were $0.32 per diluted share, up from $0.30 in the prior year. Net income increased 7 percent to $45.2 million, or $0.32 per diluted share, versus $42.4 million or $0.30 per diluted share in the prior year. The company increased its 2006 EPS guidance increased to $1.15.
LIONBRIDGE EXPANDS OFFSHORE OPERATIONS...Lionbridge Technologies, Inc. is opening a new office in Shanghai and expanding its globalization, testing and development operations in Beijing; Mumbai, and Chennai, India; Warsaw; and Zilina, Slovakia.
EDS OFFERS TO BUY REST OF MPHASIS SHARES...EDS announced in India an open offer to acquire an additional 20 percent of MphasiS BFL Limited for Rupees 204.5 per share in cash. At current exchange rates, the total purchase price for this offer, assuming full acceptance, is approximately US$150 million. EDS expects this transaction to be completed by early first quarter 2007.
CHINA OUTSOURCING FORUM...The New England China Information and Networking Association (NECINA)is presenting on Friday, November 3, 2006, 8:00am - 12:00pm at the DoubleTree Hotel in Waltham, MA "China Outsourcing Forum," the first ever business forum in North America focused on the fast-growing Chinese ITO and BPO industry. Hear first-hand China outsourcing experiences from senior executives at State Street and Darwin Partners. Learn the latest trends and best practices from leading professionals at AMR Research and WilmerHale. Network with senior executives from the top 20 Chinese outsourcing vendors. For more information and to register, visit http://www.chinaoutsourcingforum.org/
Posted by jbowles at 07:36 PM
New Business
Vermont-based National Life Group, a growing and diversified family of financial service companies founded more than 150 years ago, has signed a multi-year contract with Perot Systems for mainframe operations services. Under terms of the deal, Perot Systems will provide data center, storage and network services to the insurer's flagship company, National Life Insurance Company, and to Life Insurance Company of the Southwest.
SAVVIS,Inc. announced that easyJet, Europe's leading low-fares airline, has outsourced its mission-critical IT infrastructure to underpin its risk management strategy, provide an enhanced customer experience and reduced costs per seat. 98% of easyJet’s business is conducted via its Web site, making it one of Europe’s biggest Internet retailers. During peak periods, the airline books an average of 10 seats per second and generates nearly $4 million an hour.
State Street Corporation announced that it has been appointed by Evergreen Investments to provide investment manager operations outsourcing services for more than 2,500 portfolios representing approximately $150 billion in assets, as of September 30, 2006.
Posted by jbowles at 07:35 PM
WEBINAR: Understanding Risk in BPO
Join SAP and Everest Group to learn how to understand risk in BPO, allocate it appropriately during the procurement of BPO services, and manage it on an ongoing basis.
Date: 15 November 2006 at 5pm CET, 11am Eastern, 8am Pacific. Click here to register.
Posted by jbowles at 07:35 PM
Alliances
LASON, Inc. recently entered into a joint services agreement with Klik Technologies, a financial services company specializing in providing comprehensive solutions for remittance processing and financial transactions. Under this agreement, LASON and Klik Technologies will establish a mutual third-party lockbox network for complex financial transactions.
Posted by jbowles at 07:35 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 07:34 PM
October 19, 2006
Top Stories
CLIENT LOGIC, SITEL TO MERGE...ClientLogic and SITEL, both leading global business process outsourcing providers, have entered into a definitive merger agreement. Under the terms of the agreement, a newly formed subsidiary of ClientLogic will merge with SITEL and pay $4.05 per share in cash for all of the outstanding common stock of SITEL. The transaction values SITEL at approximately $450 million.
GENPACT NAMES HEAD OF MEDIA SERVICES JOINT VENTURE...Genpact announced the appointment of Ricky Bindra as the CEO of the recent Genpact- NDTV joint venture, NGEN Media Services. In his new role, Bindra will be spearheading the operationalization of a world class delivery organization by building the management, front-end teams and processes.
IBM REPORTS STRONG QUARTER...IBM announced third-quarter 2006 diluted earnings of $1.45 per share from continuing operations, an increase of 54 percent as reported, compared with diluted earnings of $.94 per share in the third quarter of 2005 . Third-quarter income from continuing operations was $2.2 billion compared with $1.5 billion in the third quarter of 2005, an increase of 47 percent. Total revenues for the third quarter of 2006 of $22.6 billion increased 5 percent (4 percent, adjusting for currency) from the third quarter of 2005.
FISERVE ACQUIRES CLAIM RESOLUTION FIRM...Fiserv Health announced the acquisition of Innovative Cost Solutions (ICS), a claim resolution company that negotiates health care claims, specifically from non-network providers. As a new operating company within Fiserv Health Specialty Solutions, ICS will continue to provide services to external customers and other health care payers.
CAPGEMINI, MICROSOFT EXTEND ALLIANCE…Capgemini Group and Microsoft Corp. announced they will extend their longtime alliance with a new agreement and enlist the services of the Sogeti Group, a wholly owned subsidiary of Capgemini and a premier IT services provider.
EDS NAMES VP, TREASURER...EDS has elected Anthony Glasby as vice president and treasurer. Glasby replaces Ron Vargo, who was recently named executive vice president and chief financial officer for EDS. In his new position, Glasby is responsible for all domestic and international treasury activities including pension management, corporate investments, risk management and insurance.
OVERSIGHT WEBINAR ON MANAGING SHARED SERVICES CENTERS...Oversight Systems Inc. will host a web conference entitled "Continuous Monitoring Moves Shared Service Centers from Good to Great" on held Wednesday, Nov. 1, at 2 p.m. (EST). Oversight Vice President of Business Development Chris Rossie will highlight the challenges of managing shared services centers and introduce technology solutions for continuous monitoring.
Posted by jbowles at 09:04 AM
New Business
MAG Industrial Automation Systems, a leading global machine tool and systems provider serving the durable goods industry and headquartered in Sterling Heights, MI, has selected Perot Systems to provide infrastructure, consulting and applications services as part of a 10-year, $110 million information technology outsourcing contract.
The U.S. Department of Justice, Federal Bureau of Investigations (FBI) has awarded the Unisys a contract for the development and deployment of the Next-Generation Combined DNA Index System (NGCODIS). Under the contract, Unisys will provide the FBI with software development, deployment and optional operations and maintenance support. The estimated value for the two-year base period is $11 million. If all option years are exercised, the estimated value to Unisys could be $50 million.
Trammell Crow Co. will provide Ford Motor Co.with comprehensive real estate services for its 30 million-square-foot portfolio in the United States and Canada. Trammell Crow will handle transaction management, brokerage, facility management, lease administration, construction project management and repositioning, sale or redevelopment of idle plants.
Affiliated Computer Services, Inc. has signed a 2-year, estimated $4.8 million extension to its contract to continue conducting clinical editing and pharmacy prior authorizations with its SmartPA(R) tool for the Texas Health and Human Services Commission (HHSC) Vendor Drug Program.
Posted by jbowles at 09:03 AM
New Services
Ceridian is launching a new, fully automated time and attendance and scheduling solution. This new offering will enable employers to complete these processes faster and better, while also developing detailed reports and analyses on employee productivity, absence management and other workforce management issues.
Posted by jbowles at 09:03 AM
Alliances
Ketera and Infosys BPO, the business process outsourcing subsidiary of Infosys Technologies, announced a strategic alliance designed to help enterprise customers transform their procure-to-pay business processes with outsourced solutions and services. Together, Ketera and Infosys BPO can offer customers worldwide a transformational solution that reduces procurement costs, improves spend compliance, and ultimately increases spend under management.
Genpact and Sabrix, Inc. announced a strategic alliance to provide rapid-deployment transaction tax compliance solutions for Oracle E-Business Suite customers.
Posted by jbowles at 09:03 AM
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 09:02 AM
October 12, 2006
Top Stories
KENEXA ACQUIRES BRASSRING...Kenexa announced an agreement to acquire BrassRing, a leading provider of talent management solutions to enterprise organizations across multiple vertical markets and on a global basis. Under the terms of the agreement, Kenexa has agreed to pay an aggregate purchase price of approximately $115 million for all of BrassRing’s assets, including $10 million in net cash.
ACCENTURE COMPLETES PHASE ONE OF ARMY FINANCIAL MANGEMENT SYSTEM...Accenture has successfully completed the first phase of the U.S. Army’s new financial management system, known as the General Fund Enterprise Business System (GFEBS), at Fort Jackson, S.C. GFEBS is designed to help the Army standardize and streamline its financial business processes in order to provide continuous access to accurate, reliable and timely financial information across the entire organization.
CEREDIAN NAMES NEW PRESIDENT, CEO...Ceridian Corporation has appointed Kathryn V. Marinello president and chief executive officer, effective October 20, 2006. Ms. Marinello, most recently president of General Electric Fleet Services, will succeed Ronald L. Turner. She will be elected to the Ceridian Board of Directors at the next meeting of the Board.
UNISYS LEADS EC OPEN SOURCE PROJECT...The European Commission has selected a consortium led by Unisys Belgium, a subsidiary of Unisys Corporation, to create and manage the Open Source Observatory and Repository (OSOR). This contract was awarded to the consortium, consisting of Unisys Belgium, the Maastricht Economic Research Institute on Innovation and Technology, GOPA Cartermill and the Universidad Rey Juan Carlos, after a public call for tender. This internet service and portal allows European administrations to centrally store and share the software code of their open source applications and exchange open source knowledge.
HEWITT ADDS MOBILITY OPERATIONS IN CHINA...Hewitt Associates has launched mobility operations in Shanghai. The company will provide mobility services, which include relocation, logistics, international assignment administration, as well as the integration of payroll and other benefits, to several multinational clients operating in Asia. In total, Hewitt delivers mobility services — a component of Hewitt’s HR outsourcing suite of services — to more than 200 multinational clients and 10,000 employees in 100 countries
OPI APPOINTS EUROPEAN PRESIDENT...Outsource Partners International, Inc. (OPI), a leading professional services firm dedicated solely to finance and accounting outsourcing, announced the strengthening of its European business with the appointment of Bruce Thew as European President. Bruce will be based in OPI’s London office and has joined OPI to direct its growth both in the UK and across Europe.
EXCELLERATEHRO OPENS DES MOINES FACILITY...ExcellerateHRO has opened a new service delivery facility in Des Moines, IA to provide a full suite of HR Outsourcing Services to include Benefits Administration, Payroll, Workforce Administration, Absence Management, Recruiting and Staffing and Compensation Management services. Built as an addition to EDS' existing Business Process Outsourcing (BPO) Service Center, the new construction houses 250 workstations and two training facilities.
Posted by jbowles at 07:42 PM
New Business
Accenture has signed a five-year agreement with the Confederated Tribes of the Umatilla Indian Reservation (CTUIR) near Pendleton, Oregon to help manage Cayuse Technologies, LLC, a newly formed American Indian enterprise. Cayuse Technologies, 100-percent owned by the CTUIR, will provide U.S. companies with services including: software development, call center, helps desk, image and document processing, storage and retrieval, and finance and accounting support.
Sytel, Inc., a wholly- owned subsidiary of TechTeam Government Solutions, Inc., has been chosen by the National Institutes of Health (NIH), Office of Information Technology (OIT) to deliver IT computing support and services. The estimated contract value is $28 million in revenue over a five-year period.
Posted by jbowles at 07:42 PM
Alliances
Genpact and 170 Systems, a leader in optimizing financial processes for the world's largest companies, have formed a strategic global alliance to jointly provide powerful and rapid Oracle deployment solutions for Oracle E-Business Suite customers. Under the alliance, Genpact will integrate its Appready platform with 170 Systems' 170 MarkView Financial Suite to provide Oracle-based Global 2000 businesses with best-of-breed finance solutions.
Microsoft Corporation and Unisys Corp. announced they will work together to provide solutions for the integrated justice and domestic security market. Microsoft has selected Unisys as a lead go-to-market partner focused on information sharing and analysis extending into the homeland security and emergency management domain.
Posted by jbowles at 07:41 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 07:40 PM
October 05, 2006
Top Stories
VODAFONE TAPS EDS, IBM...Vodafone Group PLC has selected EDS and IBM to manage its application development and maintenance services in a global IT outsourcing deal. The mobile phone giant hopes to conclude negotiations and finalize contracts with the two outsourcing partners in the coming weeks. No financial details have yet been announced.
BANTA REJECTS CENEVO TAKEOVER OFFER...Banta Corporation announced that its Board of Directors, in consultation with its financial and legal advisors, has unanimously rejected Cenveo, Inc.'s unsolicited proposal to acquire Banta for $47 per share.
FORMER HEAD OF ACS HR SOLUTIONS JOINS MOTIF AS CEO...John Coker has joined Motif, Inc., a leading provider of business process outsourcing services to Fortune 500 companies, as CEO. Coker will manage Motif’s overall business strategy, key customer relationships and the company’s U.S. operations. He brings to Motif more than 30 years of valuable financial services and benefits administration experience and has held senior management positions at global corporations including Mellon Bank, Fidelity Investments, Prudential Investments & Affiliated Computer Services (ACS).
ACS BUYS SYSTECH INTEGRATORS...Affiliated Computer Services, Inc. has acquired Systech Integrators, Inc., an information technology (IT) solutions company offering an array of SAP services. The terms of the acquisition specify a purchase price of $65 million plus contingent payments based on future financial performance. The transaction will be funded with a combination of cash on hand and borrowings under ACS' existing credit facility.
KEANE FIRES TOP EXECUTIVE...Keane, Inc. announced that Richard S. Garnick, President of North American Services and Global Business Lines and a member of the company's Office of the President, has been dismissed for cause and has left the company.
KELLY SERVICES INCREASES JAPAN STAKE...Kelly Services, Inc. announced its purchase of the ownership share of Sony Corporation in Tempstaff Kelly, a tri- party joint venture with Tempstaff, the second largest staffing company in Japan, Sony Corporation and Kelly Services. With the purchase of Sony Corporation's 40 percent ownership share, Kelly will increase its ownership interest to 49 percent effective October 2, 2006. Financial terms of the agreement were not disclosed.
PEROT SYSTEMS, RHODE ISLAND BLUE CROSS MODIFY CONTRACT...Blue Cross & Blue Shield of Rhode Island (BCBSRI) and Perot Systems have agreed to modify their current agreements to discontinue the LRSP replacement project in its present form. Perot Systems will continue work on the business process and the information technology outsourcing, which represents the vast majority of the work it does for BCBSRI.
Posted by jbowles at 09:49 AM
New Business
Accenture has been awarded a five-year, $199 million contract to modernize the technology platform for the California Public Employees’ Retirement System (CalPERS), the largest public pension fund in the United States with more than $210 billion in assets. CalPERS provides retirement and health benefits to more than 1.4 million public employees, retirees and their families, and more than 2,500 employers.
Ness Technologies, Inc. has implemented an SAP-based ERP system in 18 subsidiaries of Swiss-based media conglomerate Ringier in the Czech Republic, Hungary, Romania, Serbia and Slovakia. Ringier is the largest media enterprise in Switzerland, with approximately 6,500 employees in 12 countries.
RealLife HRSM, an outsourced benefits management automation solution provider, has added US Airways Group, Inc. to its growing list of clients. Beginning this fall, the airline’s 50,000 employees and retirees will elect their benefits via the internet using a personalized Web portal that displays only the offerings pertinent to them, all through RealLife HR’s single access point for benefits information, benefits enrollment and post-enrollment life event management.
Posted by jbowles at 09:49 AM
New Services
EDS has launched a new Product Lifecycle Management (PLM) Solution that it describes as the first of an extended line of solutions developed that enable manufacturers to design anywhere, build anywhere and service anywhere. Through a 2005 solution alliance agreement signed with UGS Corp., a leading global provider of PLM software and services, EDS can provide new solutions or enhance or replace all or part of an existing solution by combining EDS' systems and application integration capabilities with UGS' PLM software and services.
Posted by jbowles at 09:48 AM
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 09:47 AM
