December 14, 2006
Top Stories
ING FINALIZES DEAL WITH ACCENTURE-LED TEAM...Accenture, Atos Origin, Getronics and KPN have each signed seven-year contracts with ING to jointly supply workplace services for 53,000 ING employees in Europe. As part of the agreement, approximately 430 ING employees in the Netherlands and Belgium will transfer to Atos Origin, Getronics and KPN. The workplace services include the provision, installation, maintenance and support of desktops, laptops, printers and telephones. The contracts have a total value of €750 million, including VAT. Each of the four companies, which together comprise ING’s preferred supplier team, will fulfill different aspects of ING’s workplace services needs. The value of the deal for Accenture is worth €52 million.
VERITAS CAPITAL ACQUIRES PEARSON GOVERNMENT SOLUTIONS...Veritas Capital Partners, a leading private equity firm, has agreed to acquire Arlington, VA-based Pearson Government Solutions (PGS) from Pearson plc, the international media and education company. Veritas Capital will pay $600 million of consideration, and as part of the agreement Pearson plc will retain a minority interest in PGS. Veritas Capital has particular expertise investing in companies that provide outsourcing services to government agencies.
ANN TAYLOR RENEWS CONVERGYS CONTRACT...Convergys Corporation will continue to deliver customer service for Ann Taylor, a premier American women’s specialty retailer, under the terms of a contract renewal. Working with Convergys, Ann Taylor has achieved outstanding customer satisfaction scores. According to BizRate, Ann Taylor achieved a 9.5 rating on a scale of 10 versus a 7.68 average for the industry overall in 2005.
MOTIF OPENS OPERATIONS CENTER IN MANILA...Motif, Inc. announced the opening of a new operations center in Manila, Philippines. Motif now provides operational redundancy and access to a diverse talent pool for its clients by offering services across its India center and the new Manila center.
New Business
The European Commission has awarded a Unisys led consortium, ONE4EU, four out of seven lots of the ESP-DESIS Call for Tender (External Service Provision for Development, Studies and Support of Information Systems). ESP-DESIS represents a major milestone in Unisys relationship with the European Commission.
Safety Insurance Group Inc. has licensed Computer Sciences Corporation's Exceed Claims, Billing and Client insurance software. Safety also has signed a 10-year agreement with CSC for applications support and managed hosting services. Safety plans to process policies for lines of insurance business other than auto on Exceed components to provide more flexible and scalable billing and claims services to its customers. Terms of the agreement were not disclosed.
Barclays Global Investors (BGI), a division of U.K.-headquartered banking-services provider, Barclays Bank, has awarded a financial-services contract to JPMorgan Worldwide Securities Services, a part of the New York-headquartered financial-services provider, JP Morgan Chase. Under the terms of the contract, JPMorgan will manage almost all the European investment operations of BGI.
BancTec, a leading global provider of document and payment processing solutions, has entered a multi-year agreement to provide outsourced accounts payable services for Safety-Kleen, a North American leader in waste management. Services performed by BancTec will include the extraction, preparation and scanning of the invoices, as well as the indexing of the images in Safety-Kleen’s AP system.
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December 07, 2006
Top Stories
CONVERGYS TO PROVIDE HR SUPPORT FOR INTERCONTINENTAL HOTELS ASIA...Convergys Corporation has signed a 6-year contract to provide human resources business process outsourcing services to support the Asia Pacific region of the InterContinental Hotels Group. Convergys service centers in Bangalore, India; Kuala Lumpur, Malaysia; and Dalian, China, will provide HR data administration and payroll services for IHG corporate and reservations center employees in the Asia Pacific region.
UNISYS TEAMS WITH WIPRO TECHNOLOGIES...Unisys Corporation announced a global alliance with Wipro Technologies, the global IT services business of Wipro Ltd. to establish an integrated means to execute go-to-market and delivery activities for managed services. Under the terms of the alliance, Wipro Technologies will work with Unisys to jointly provide deskside and hardware support services and multi-lingual service desk services for global customers.
RITTENMEYER NAMED EDS PRESIDENT...EDS has promoted Ron Rittenmeyer to the position of president. He will also retain his current role as chief operating officer. Jeff Heller, who has served as president since returning to EDS in 2003, has been named vice chairman. Both appointments are effective immediately. As president and chief operating officer, Rittenmeyer is responsible for all of EDS' global operations. Heller retains his position on the EDS Board of Directors and as a primary conduit to EDS' client base.
ORGANIZATIONS RIPE FOR HR OUTSOURCING...Organizations are primed for human resources (HR) outsourcing as they look to standardize HR processes and focus on business issues, according to a new survey by Hewitt Associates, a global human resources services company. Hewitt’s research shows that companies that have already outsourced HR activities are satisfied with their outsourcing arrangement and are realizing the benefits they hoped to gain.
New Business
ExcellerateHRO has signed a contract to provide Benefits Administration Services for Bank of America, one of the world's largest financial institutions. Under the five-year agreement, ExcellerateHRO will provide flexible benefits plan services to more than 10,000 Bank of America associates in the United Kingdom, Ireland and Canada.
ExcellerateHRO has signed a contract to provide Benefits Administration Services for 7-Eleven, Inc., the largest chain in the convenience retailing industry. Under the 64-month renewal agreement, ExcellerateHRO will continue providing 7-Eleven's U.S. employees with Health and Welfare and Employee Profit Sharing/401(k) Plan administration, as well as Deferred Compensation Plan services added under the new contract.
EDS has been selected as a prime contractor for the U.S. Department of Veterans Affairs (VA) VistA Contractor Services (VCS) program. EDS is one of eight companies selected under a blanket purchasing agreement (BPA) worth approximately $1 billion, over a potential 10-year term, including options and award term periods. Under the agreement, EDS will provide applications maintenance and sustainment services for Veterans Health Information Systems Technology and Architecture (VistA).
Perot Systems Corporation announced that Whirlpool Corporation has selected eServ, its product development support company, to Provide custom engineering services as a preferred supplier. Under terms of the two-year contract, eServ will support select engineering projects from Whirlpool Corporation's cleaning and fabric care product groups. The agreement also includes extension options for up to an additional two years of service. Financial terms of the contract were not disclosed.
PFSweb, Inc. has been chosen by Katun Corporation, the world’s leading alternative supplier to the office equipment industry, to provide logistics and order fulfillment services for its Canadian operations.
Verizon Business will provide the U.S. Department of Agriculture's Forest Service with a wide range of voice communications services for its more than 1,100 offices. The five-year task order, under category 3 of the U.S. General Services Administration's CONNECTIONS contract, is valued at up to $37 million. It includes a one-year commitment and four one-year optional renewals.
The Resources Information Technology Program Office of Department of Defense’s TRICARE Management Activity awarded Unisys a contract to configure commercial-off-the-shelf software for the Military Health System’s enterprise-wide Medical Treatment Facility billing and accounts receivable operations. The project is known as the Patient Accounting System Charge Master-Based Billing (CMBB) program.
Alliances
Pitney Bowes Management Services and NewlineNoosh have entered into a strategic alliance that will enable PBMS to expand the mailstream services it currently offers customers to now include commercial and marketing print. Under the terms of the agreement, PBMS can sell NLN managed services for print at its more than 1,600 customer locations in the U.S. NLN’s services complement PBMS’ existing print communications, print asset management, centralized reprographic management and best site services offerings.
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November 30, 2006
Top Stories
INTERNAL INVESTIGATION LEADS TO SHAKEUP AT ACS...Affiliated Computer Services, Inc. announced the completion of the company's internal investigation into its historical stock option practices and the actions it is taking in response to the findings of the investigation, including changes in its executive management. The investigation concluded that certain conduct of Mark A. King, the company's Chief Executive Officer, and Warren D. Edwards, the company's Chief Financial Officer, violated the company's Code of Ethics for Senior Financial Officers. King and Edwards have resigned, effective November 26, 2006, and have entered into separation agreements with the company.
The Board of Directors has appointed Lynn Blodgett, who has been serving as Executive Vice President and Chief Operating Officer of the company and as a director since September 2005, as President and Chief Executive Officer, and John Rexford, who has been serving as Executive Vice President - Corporate Development since March 2001, as Executive Vice President and Chief Financial Officer and as a director, in each case effective immediately. Blodgett and Rexford have served in various executive capacities with the Company for over ten years.
KENEXA NAMES NEW CEO/PRESIDENT...Kenexa announced that Troy Kanter, who joined the company in 1997 and currently holds the position of president, Human Capital Management, has been appointed to company president and chief operating officer, effective November 30, 2006. Kanter’s new role will include the responsibilities of Elliot Clark, who resigned from his position as chief operating officer and as a member of the board, effective November 30, 2006.
CERIDIAN ACQUIRES HEALTH COACHING FIRM...Ceridian Corporation has acquired Ann Arbor, Mich.-based Leade Health, a health coaching firm specializing in the areas of weight management, stress management, tobacco cessation, and cardiovascular health. Leade Health is a privately held company with more than 15 years experience in disease prevention within government agencies, health plans and corporations.
New Business
GOL Linhas Aereas Inteligentes S.A., Brazil’s low-cost, low-fare airline, has renewed its outsourcing agreement for Navitaire’s reservations system, enhancing services provided under a previous multi-year contract. The agreement includes new Web hosting services and further support for GOL’s recently announced pan-Latin America expansion plans. Terms of the contract were not disclosed. Navitaire, a wholly owned Accenture subsidiary, provides outsourced technology and business solutions to the airline industry.
EDS is developing a middleware, messaging and security platform for Deutsche Lufthansa AG, a leading international airline, based on an application development and integration services contract awarded to EDS at the end of the second quarter of 2006. This platform serves as the basis of the Lufthansa Service Oriented Architecture (SOA), enabling Lufthansa the ability to interface, interoperate and integrate with Lufthansa business partners and other airline systems through open standards.
Siemens Business Services, Inc. has signed a multi-year maintenance services contract with Xerox Corporation to provide maintenance services for Xerox black and white and color network printers, as well as select multifunctional systems throughout the United States that are under warranty or an existing service contract.
Church's Chicken announced a worldwide partnership with WNS Global Services. The partnership initially will focus on finance and accounting (F&A) processes for restaurants owned by Church's throughout the world. The relationship between Church's and WNS signifies the first time a U.S. restaurant company has outsourced 100% of its financial and accounting processes overseas. WNS will handle functions such as accounts receivables, accounts payables, bank account reconciliation and general ledger maintenance.
Kanbay International, Inc. was selected as the key information technology provider for NISH, a nonprofit organization creating employment opportunities for people with severe disabilities.
New Services
EquaTerra announced it will use Microsoft business intelligence (BI) technology to make an outsourcing and business process governance solution available that will enable, it says, organizations to more efficiently and effectively govern and manage the performance of their internal business processes, such as HR, IT, Procurement and Finance & Accounting.
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November 22, 2006
Top Stories
Thanksgiving Edition - Have a Great Holiday!
BARCLAYS RENEWS SIEMENS BPO CONTRACT...Siemens Business Services announced the extension of its business process outsourcing (BPO) contract with Barclays, in a multi-million dollar deal. This extension to 2008 is the second since the beginning of the relationship with Barclays in 2000. Siemens Business Services is operating areas of Barclays’ retail banking back office, including: account closures, transfer of funds and administrative processing for direct debit and standing order instructions.
ARAMARK CALLS SPECIAL SHAREHOLDER MEETING TO CONSIDER SALE...ARAMARK Corporation has called a special meeting of shareholders for December 20, 2006 to consider and vote upon the proposal to adopt the previously announced merger agreement providing for the acquisition of ARAMARK by an investor group led by 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.
UNISYS EXPANDS DEAL WITH BRUSSELS AIRPORT...Unisys Corporation announced that its Belgian subsidiary has expanded its relationship with The Brussels Airport Company through a new five-year IT outsourcing contract. Unisys Belgium will replace and manage the common infrastructure used by more than 80 airlines to issue tickets, route baggage and generate boarding passes. Unisys Belgium will upgrade Brussels Airport’s Common Use Terminal Equipment (CUTE), the technology infrastructure that provides a single interface into passenger and baggage information throughout the airport.
BISYS NAMED PROVIDER FOR BLUE FUND...BISYS announced that it is the mutual fund service provider of choice for The Blue Fund Group’s recently launched portfolios. Through its FundEnsemble service model, BISYS will provide turnkey administrative services, including comprehensive treasury, board, and distribution support as well as core fund accounting, fund administration, transfer agency, and shareholder services.
NETSUITE FORMS JAPANESE PARTNERSHIP...NetSuite announced a major partnership with Miroku Jyoho Service (MJS), a leading accounting software provider in Japan. NetSuite will leverage the expertise that MJS has in providing ERP software to SMEs and accounting firms, which accounts for 25 percent of the market share in Japan. Additionally, MJS has made a an investment of nearly $5 million that represents an equity stake in NetSuite K.K. (NetSuite's Japan subsidiary) and a combination of distribution rights and joint engineering commitments.
Infrastructure Management Outsourcing Survey
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November 16, 2006
Top Stories
EDS TO ACQUIRE SAP SPECIALIST FIRM...EDS will acquire Global Enterprise Management Solutions, LP. (GEMS). Based in Irving, Texas, GEMS is a provider of SAP enterprise management and customer relationship management solutions. Financial terms of the transaction were not disclosed. The transaction is expected to close by year-end. GEMS is a certified SAP value-added partner serving clients primarily in the IT services, assembly/manufacturing, logistics and transportation industries.
OCE COMPLETES CASEDATA ACQUISITION...Oce N.V. announced that its U.S. division, Oce Business Services, has completed the previously announced acquisition of CaseData, Inc., a leading provider of electronic discovery and litigation support services to U.S. law firms and corporations, with approximately $14 million annualized revenue.
OPI OPENS SERVICE CENTER IN BULGARIA...Outsource Partners International, Inc. (OPI), a leading professional services firm dedicated solely to finance and accounting outsourcing, announced today the expansion of its business with the opening of a European service center in Sofia, Bulgaria. The Sofia operation offers capacity for 125 people delivering finance and accounting services in a number of languages, including English, French, German, Italian, Spanish, Portuguese, Dutch, Polish, and Bulgarian.
New Business
Avon Products, Inc. and IBM announced a strategic multi-year business partnership by which IBM Global Services will provide Avon with a portfolio of specialized human resources services and technologies. Financial terms were not disclosed. Under the partnership, IBM will provide Avon with support for certain key HR processes, including compensation, payroll, benefits, and performance management.
Perot Systems Corporation has teamed with Salt Lake City-based Medicity, Inc. to build the first statewide health information exchange for the Delaware Health Information Network (DHIN). The six-year contract, with two automatically renewing two-year extensions, was awarded in competitive bidding in October. The DHIN Clinical Information Exchange Utility is designed to help the state of Delaware monitor public health, allow providers to better manage patient care, and provide consumers with tools to become more engaged in their own healthcare.
Comcast has selected StarTek to support Comcast's rapidly growing IP-enabled phone service, Comcast Digital Voice. StarTek will provide provisioning services and additional back-office operations.
Computer Sciences Corporation has signed a seven-year,$180 million information technology (IT) services contract with Newmont Mining Corporation, one of the world's largest gold mining
companies. Under the agreement, CSC will manage IT operations for all of Newmont's global shared services operations and regional gold mining facilities,including locations in Denver, Nevada, Ghana, Peru and Australia.
Workscape, a provider of outsourced benefits administration and performance-driven compensation solutions, announced that Spartanburg, S.C.-based BMW Manufacturing Co. has recently implemented the company's comprehensive outsourced benefits administration services to handle the benefits service needs of BMW's more than 4,400 employees.
New Services
Ceridian announced the launch of CPA Client Connection — a secure, hosted Web portal that enables accounting firms to easily share data and information with clients, helping them mitigate compliance risks and increase productivity.
Infrastructure Management Outsourcing Survey
Everest Research Institute is conducting a brief survey across professionals associated with IT outsourcing services, and we would appreciate your valuable input. Please take 10 minutes to complete this important survey.
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November 09, 2006
Top Stories
MCKESSON TO ACQUIRE PER-SE FOR $1.8 BILLION...McKesson Corporation will acquire Per-Se Technologies, a leading provider of financial and administrative healthcare solutions for hospitals, physicians and retail pharmacies, for $28.00 per share in cash. In total, including Per-Se’s outstanding debt, the transaction is valued at approximately $1.8 billion. By the third year, McKesson expects to realize pre-tax synergies of at least $50 million to $75 million. The acquisition is expected to close in the first quarter of 2007, McKesson’s fourth fiscal quarter, subject to customary conditions, including regulatory review.
MCCAIN NAMED HEAD OF HP SERVICES...HP announced that it has promoted John W. McCain to run HP Services, the company’s $15.5 billion worldwide services business. A seasoned information technology services and sales executive, McCain will serve as senior vice president and general manager of HP Services. He will report to Ann Livermore, executive vice president, Technology Solutions Group, HP. McCain, 47, has been the senior vice president of HP Consulting & Integration since December 2005.
EXECUTIVE MOVES AT CAPGEMINI ENERGY...John Christens has joined Capgemini Americas Outsourcing Services (AOS) as CEO of Capgemini Energy, a Dallas-based joint venture that provides business process and information technology outsourcing solutions to utility companies. Christens succeeds Bob Pryor, who earlier this year was chosen to lead Capgemini’s AOS division. Amin Bishara has been named to Capgemini’s Outsourcing Global Utilities Sector and Perry Stoneman will step into Bishara’s former role of Business Development Leader for Capgemini’s Utilities Outsourcing Practice in North America.
CSC OPENS IT CENTER IN PRAGUE...Computer Sciences Corporation opened of a new delivery center in Prague, Czech Republic, in response to client demand for near-shore service delivery alternatives. The center will provide a range of information technology (IT) services and be fully integrated as part of CSC's World Sourcing model.
Upcoming Everest Research Institute Webinar: Save the Date!
December 5, 2006 – Procurement Outsourcing in 2006: Is the market coming out of the chasm?
New Business
EDS was awarded two task orders supporting anti-fraud activities at the Centers for Medicare & Medicaid Services (CMS). In addition to the one- year base term, each task order includes four one-year options. If all options are exercised on both task orders, the value of the contracts is estimated at $120 million.
Infrastructure Management Outsourcing Survey
Everest Research Institute is conducting a brief survey across professionals associated with IT outsourcing services, and we would appreciate your valuable input. Please take 10 minutes to complete this important survey.
Alliances
KARVY Global Services Limited and Real Time Accounting, Inc., an online accounting and BPO firm, have entered into a collaborative agreement to provide online accounting and Business Process Outsourcing (BPO) services to the rapidly growing QuickBooks, SAGE and Microsoft Dynamics marketplaces.
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November 02, 2006
Top Stories
CB RICHARD ELLIS ACQUIRES TRAMMELL CROW FOR $2.2 BILLION...CB Richard Ellis Group, Inc. has entered into a definitive agreement to acquire Trammell Crow Company for $49.51 per share of common stock in cash. The transaction is valued at approximately $2.2 billion, including the assumption of Trammell Crow Company’s corporate debt as well as transaction and integration costs. The deal is expected to close either in late 2006 or early 2007, subject to approval by Trammell Crow Company’s shareholders and federal regulatory agencies as well as other customary conditions.
R.R. DONNELLEY TO ACQUIRE BANTA...R.R. Donnelley & Sons Company will acquire Banta, a provider of printing, supply chain management and related services in an all-cash deal valued at approximately $1.3 billion, or $36.50 per share after the special dividend of $16.00 per share already declared by Banta. The agreement has been unanimously approved by the Boards of Directors of both companies and is expected to close in the first quarter of 2007.
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.
ADP FIRST QUARTER REVENUES RISE...Automatic Data Processing, Inc. reported 15% revenue growth, to $2.2 billion, and $0.46 earnings per share for the first fiscal quarter ended September 30, 2006. Pretax and net earnings from continuing operations grew 24% and 25%, respectively, and diluted earnings per share from continuing operations increased 31%, from $0.35 earnings per share a year ago on fewer shares outstanding.
COMPANIES MOVING HIGH-END OPERATIONS OFFSHORE...Companies are increasingly moving sophisticated, mission-critical functions such as product design and research and development to China, India and other offshore locations primarily because these countries can provide highly skilled scientific and engineering workers who are in short supply in the U.S. and Europe, according to a new study by Duke University and management consulting firm Booz Allen Hamilton.
New Business
TechTeam Global, Inc. has been chosen by Boehringer Ingelheim, one of the world's leading pharmaceutical companies, to deliver a portfolio of managed support services, including help desk, user administration, tape library, and desktop support services for the firm's IT infrastructure. Under the three-year contract, TechTeam will provide support for Boehringer Ingelheim's employees in the United Kingdom and Ireland.
Computer Sciences Corporation has won a task order to provide information technology (IT) operations and maintenance services to the U.S. Agency for International Development (USAID). CSC estimates the value of the contract, which has a one-year base period and four one-year options, to be $98 million if all options are exercised.
Ariba, Inc. has signed a new agreement with National City Corporation, one of the nation's largest financial holding companies, to implement a comprehensive range of Ariba Spend Management solutions to streamline its procurement process and enhance the efficiency and effectiveness of its operations.
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.
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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/
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.
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.
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.
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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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
September 28, 2006
Top Stories
CSC WINS $3.73 BILLION UK HEALTH CONTRACT...Computer Sciences Corporation has been awarded a nine-year contract with the United Kingdom's National Health Service (NHS) as part of the NHS' Connecting for Health program to improve healthcare service for patients in the North East and East of England. The contract is valued at US$3.73 billion (1,965 million pounds sterling) if all options are exercised. The big loser in the deal is Accenture,, which had the original contract.
INDUSLOGIC ANNOUCES MERGER, NAME CHANGE...Induslogic, a global provider of outsourced product development services, is merging with Bonus Technology, a New Jersey-based software engineering services company with significant operations in the Ukraine. To better symbolize its expanded worldwide presence resulting from this merger, Induslogic is changing the company's name to GlobalLogic.
COGNIZANT ACQUIRES AIMNET...Cognizant Technology Solutions, a leading provider of IT services, has acquired Massachusetts-based AimNet Solutions Inc., a managed infrastructure and professional services firm. In acquiring AimNet, Cognizant gains capabilities and expertise that strengthen the company’s fast-growing IT Infrastructure Services (ITIS) practice.
EBIX ACQUIRES FINETRE...Ebix, Inc. has signed an agreement to acquire Virginia based Finetre Corporation through a merger effective October 1, 2006. The closing is expected to occur on October 2, 2006. Founded in 1997, Finetre Corporation is a Northern Virginia-based ASP software technology firm focusing on transaction processing and compliance automation in the financial services industry.
CAPGEMINI NAMES CEO OF P&C UNIT...Capgemini has named Salil Parekh, Chief Executive Officer of the company’s North America Project & Consulting business unit. Salil, who reports to Capgemini Group CEO Paul Hermelin and is a member of the Group Executive Committee, has been General Manager of the Capgemini’s North America P&C unit since October 2005.
BULL ACQUIRES INTERNET OUTSOURCING FIRM...Bull has acquired Agarik, a French company specializing in critical Internet infrastructure outsourcing and managed on-line services. The move will strengthen Bull's position in the outsourcing market for IT platforms and critical data flows that require 24/7 continuous operation.
New Business
The General Services Administration Public Buildings Service (PBS) has selected Perot Systems Corporation's government subsidiary to provide system maintenance, user and enhancement support for the Computer Aided Drawing (CAD) Library Project. The five-year, indefinite-delivery, indefinite-quantity contract has an expected value of nearly $7 million and represents an extension of the relationship between the company and the agency.
Affiliated Computer Services, Inc. has been awarded a renewed and expanded business process outsourcing (BPO) contract with First Horizon Home Loan Corporation, one of the nation's leading home financing companies. ACS and First Horizon launched their successful BPO partnership in 2002, with ACS providing document preparation, scanning, and indexing of mortgage loan files for the company.
BearingPoint, Inc. has been selected as part of a team led by Keane, Inc. to operate, maintain and modernize the U.S. Securities and Exchange Commission's Electronic Data Gathering, Analysis, and Retrieval system, commonly referred to as EDGAR.
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.
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.
September 20, 2006
Top Stories
HP EXTENDS DIRECTTV RELATIONSHIP...HP and DIRECTV, Inc. announced a seven-year extension of their 12-year relationship with a new information technology outsourcing contract valued at approximately $500 million. HP will continue to provide IT operations and application testing services designed to support DIRECTV's ability to roll out new promotions and new services, acquire new customers and ensure they receive timely, accurate billing for the satellite television services they use.
EPAM MAKES STRATEGIC MERGER...EPAM Systems, Inc., a global software services company, independently recognized as the #1 IT outsourcing provider in Central and Eastern Europe for the last two years, and Vested Development, Inc., one of the top five Russian software outsourcing vendors, have announced a strategic merger. The combined company, which will operate under the EPAM Systems name, will employ over 2,200 software professionals across eight countries and exceed a $70 million revenue run rate.
OCE NAMES NORTH AMERICAN CEO...Oce North America announced the appointment of Joseph D. Skrzypczak to President and CEO of Oce North America, effective December 1. Skrzypczak will be responsible for Oce's print technology business in North America. He is currently President and CEO of Oce Imagistics.
GMAC GLOBAL RELOCATION OPENS IN CHINA...GMAC Global Relocation Services has opened a new global service center in Shanghai, China. In addition to the new Shanghai operations, GMAC Global Relocation Services now has eight global service centers. Other service centers are located in London, Singapore, California, Illinois, Michigan, New Jersey, and Texas.
LOGICACMG OPENS PHILIPPINES CENTER...LogicaCMG, a leading international IT services company, is opening a new global service delivery center in the Philippines. Located in Metro Manila, a modern metropolis in Southeast Asia and the political, economic, social and cultural centre of the Philippines, the new location will provide services to LogicaCMG's customers from across the world.
New Business
Ariba, Inc. has been selected to provide procurement outsourcing services for Altran Group, the European leader in high technology and innovation consulting. Under the terms of a multi-year agreement, Ariba will set up a technology and service infrastructure to manage non-strategic spend for Altran in an effort to help the company drive savings and operational excellence.
The General Services Administration (GSA) Federal Systems Integration and Management Center (FEDSIM) has competitively awarded Perot Systems a $16.1 million contract to continue support for the U.S. Department of Health and Human Services National Women's Health Information Center (NWHIC) for five more years if all options are exercised. The company was first awarded the contract, under the Office on Women's Health, in 1998.
Ceridian Corporation has been awarded a contract to provide employee assistance program (EAP) services to Federal Occupational Health (FOH), a division of the U.S. Department of Health and Human Services, Program Support Center. FOH works in partnership with many Federal agencies via 360 interagency agreements throughout the U.S. and internationally.
Affiliated Computer Services, Inc. has signed a $29 million, 58-month contract with the Montana Department of Public Health and Human Services Agency (DPHHS) for fiscal agent services. The agreement is ACS' fourth consecutive Medicaid contract with Montana.
Ness Technologies, Inc. announced that its Czech subsidiary, Ness Czech, will deliver a SAP-based ERP system to the Bulgarian division of CEZ, the Czech power utility. The large-scale, multi-million dollar project will be completed by January 1, 2007.
Alliances
Ness Technologies Inc., a global provider of IT solutions and services, and NEC Corporation of America, a premier provider of IT, network and telephony solutions, announced the expansion of their strategic partnership to offer solutions and services to financial service JOCs (Japanese Owned Companies) and the American Financial Services Industry (AFSI) in North America.
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.
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.
September 14, 2006
Top Stories
AT&T TO ACQUIRE USi...AT&T Inc. has agreed to acquire privately held USinternetworking, Inc., a leading independent Applications Service Provider (ASP) -- for approximately $300 million in cash and assumed debt. The transaction, which is expected to close in the fourth quarter, is designed to enhance AT&T's enterprise service offerings. It strategically aligns USi's software and eBusiness management services and consulting expertise with AT&T's existing portfolio of enterprise hosting and managed services.
FISERVE ACQUIRES INSUREWORX...Fiserv Inc. has acquired InsureWorx, a provider of core processing software solutions for workers' compensation, commercial property and casualty (P&C) and risk administration organizations. InsureWorx, headquartered in Oakland, Calif., will become part of Fiserv Insurance Solutions.
TRIZETTO TO ACQUIRE QCSI...The TriZetto Group, Inc. has signed a definitive agreement to acquire privately held QCSI (Quality Care Solutions, Inc.), which will bring together the two leading innovators of software and information technology solutions for the healthcare payer industry.
New Business
Perot Systems Corporation and Owens & Minor, Inc., announced a five-year extension of an existing seven-year technology sourcing contract originally executed in 1998. The contract extends the Perot Systems/Owens & Minor relationship to 2014. Financial terms of the agreement were not disclosed. Perot Systems' work under the contract extension is highlighted by a mainframe migration program that will give Owens & Minor the forward-looking technology environment required to support web-based applications using a services oriented architecture.
Unilever has awarded BT a contract for the provision of a managed firewall service. The 10.5m pounds ($19.7 million) global agreement will run over a six and a half year period and follows the recent extension to its original seven-year service contract with Unilever. The new deal will involve BT taking over full management
responsibilities for Unilever's existing estate of 256 firewalls spread across 68 countries.
Affiliated Computer Services, Inc. has expanded its agreement with the State of Missouri to provide electronic health records. The value of the contract will be based upon the number of providers enrolled in the program. Over 700 Missouri physicians have enrolled in the program to date, which features cutting edge technology that will allow the Medicaid program and its participating providers to communicate critical information to improve and expedite service to at-risk patients.
Alliances
LogicaCMG has renewed and broadened the contract with SAP AG to provide managed Human Resources (HR) and Payroll services to its customers based on SAP's Enterprise Resource Planning (ERP) software. LogicaCMG's SAP based Business Process Outsourcing (BPO) services for HR and Payroll will be charged to customers on a transaction based monthly fee covering both the initial start-up cost and the on-going operational cost for the services delivered.
DataFlux, a provider of data quality and data integration solutions, and Wipro Technologies, the global IT services division of Wipro Limited announced a partnership to leverage DataFlux technology for Wipro clients and provide Wipro consulting services for DataFlux customers worldwide. The companies also announced that Wipro will establish a DataFlux Center of Excellence within its Business Intelligence & Data Warehousing Practice, training consultants and creating a knowledge base in DataFlux technology.
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.
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.
September 06, 2006
Top Stories
CAPGEMINI BOOSTS BPO CAPABILITIES WITH INDIA ACQUISITION...Capgemini has extended its Finance and Accounting Business Process Outsourcing (BPO F&A) capabilities by acquiring from Hindustan Lever Limited (Unilever Group) a 51% shareholding in Unilever India Shared Services Limited (Indigo). The acquisition of Indigo is expected to be consummated in October 2006. The specific terms of the agreement were not disclosed. At the same time, Capgemini and the Unilever Group have entered into a seven-year agreement to deliver the full range of BPO F&A services to the Unilever companies which are current customers of Indigo.
ACCENTURE CEO NAMED TO ADDITIONAL ROLE AS CHAIRMAN...Accenture CEO William D. Green has assumed the additional role of chairman, effective September 1. As chairman, he succeeds Joe W. Forehand, who retired from Accenture and the company's board of directors on August 31. Green, 53, succeeded Mr. Forehand as CEO on September 1, 2004, and has been a member of the Accenture board of directors since June 2001.
COGNIZANT ACQUIRES AIMNET SOLUTIONS...Cognizant Technology Solutions has acquired Massachusetts-based AimNet Solutions Inc., a managed infrastructure and professional services firm. In acquiring AimNet, Cognizant gains capabilities and expertise that strengthen the company's fast-growing IT Infrastructure Services (ITIS) practice.
Founded in 2000 by former AT&T executives, AimNet is a privately-held company with over 100 employees.
ACCENTURE COMPLETES NAVISYS ACQUISITION...Accenture has completed its previously announced acquisition of NaviSys, a privately held company that specializes in software solutions for the North American life insurance industry.
BLAKENSHIP JOINS LOGICACMG...Harry B. Blankenship has joined LogicaCMG as director of payments, compliance, and risk in North America. He will be responsible for the rollout of the LogicaCMG All Payments Solution (LAPS), which enables banks to make progressive transformation of their payments infrastructures while preserving their investments in legacy systems and processes.
CAPGEMINI IN THE BLACK BOOK...Capgemini is listed in the "Top 50 Best Managed Outsourcing Vendors," an annual comparison of the world's most distinguished outsourcing services providers included in the latest edition of The Black Book of Outsourcing. At 15, it was the highest rated of the leading multinational IT outsourcing vendors.
ACCENTURE LAUNCHES NEW DELIVERY CENTER IN INDIA...Accenture has launched a delivery center in Gurgaon, in the National Capital Region of Delhi, India, for application and infrastructure outsourcing and systems integration services. The facility is Accenture's 10th delivery center in India, and represents further expansion of the company's Global Delivery Network.
New Business
EDS and Visanet have expanded their existing decade-long relationship for an additional 10 years with a US$209 million agreement. EDS will continue to provide information technology (IT) and business process outsourcing (BPO) services to manage and support Visanet’s merchant processing environment, which processes more than two billion VISA transactions per year and supports about one million merchants in Brazil.
Affiliated Computer Services, Inc. has been awarded a three-year information technology outsourcing contract with the State of Maryland's Department of Human Resources. The contract is valued at $110 million.
Howard University Hospital of Washington, DC, has outsourced its outpatient accounts receivable management to Per-Se Technologies.
Howard currently uses a Per-Se revenue cycle management software tool, ePREMIS, to automate its claims submission process. The 482-bed teaching hospital expanded its relationship with Per-Se after the Company continued to demonstrate its expertise in reimbursement management.
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
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.
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.
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.
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.
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
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.
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.
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.
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.
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
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.
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.
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.
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.
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.
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
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.
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.
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.
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.
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
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.
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.
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.
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.
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
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.
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
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.
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.
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.
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
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.
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.
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.
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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.
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
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.
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.
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.
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.
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.
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.
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June 29, 2006
Top Stories
EDS WINS $700 MILLION BANK OF AMERICA DEAL...EDS announced a six-year, $700 million agreement to integrate the communications infrastructure for recently acquired MBNA Corporation into Bank of America's state-of-the-art voice and data network. Once the integration is complete, Bank of America's voice and data network will connect more than 200,000 associates in 5,800 retail banking centers and 50 contact centers. te network will span 30 states and the District of Columbia, linking 16,700 ATMs while facilitating Internet and telephone banking services.
PAYCHEX ANNOUNCES RECORD YEAR...Paychex, Inc. announced record net income of $464.9 million, or $1.22 diluted earnings per share, for the fiscal year ended May 31, 2006, a 26% increase over net income of $368.8 million, or $0.97 diluted earnings per share, for the prior fiscal year. Total revenues were $1,674.6 million, a 16% increase over $1,445.1 million for the prior fiscal year.
ACCENTURE TO BUY RANDOM WALK...Accenture will acquire Random Walk Computing, Inc., a technology consulting firm specializing in trading system applications, risk management systems and other technologies for banks, asset managers, exchanges and other financial services institutions. Terms of the transaction, which is expected to close within the next 60 days, were not disclosed.
CONVERGYS EXPANDS HR BPO IN ASIA PACIFIC...Convergys Corporation is expanding its Human Resources Business Process Outsourcing (HR BPO) business in the Asia Pacific region by opening new or expanding existing service centers in Kuala Lumpur, Malaysia; Bangalore, India; Dalian, China; and Singapore. These service centers provide HR business process outsourcing (BPO services to more than 150 global and regional Convergys clients.
HP NAMES MANAGED SERVICES GM...Pablo Sanchez-Lozano has been named senior vice president and general manager of HP's Managed Services business unit within HP Services. With more than 15 years in HP Services, Sanchez-Lozano, 40, brings extensive global business management, sales engagement and finance expertise to his new position. He will report to Steve Smith, senior vice president of HP Services.
ACS HIRES TRANSIT TECHNOLOGY GURU...Michael Nash has joined Affiliated Computer Services, Inc. as Vice President of Transit Technology Solutions. Nash brings more than 20 years experience successfully managing large projects and transit operations in the global transportation industry with consumer, commercial, and government clients. Nash will be responsible for shaping the strategic direction of the business with a major focus on escalating ACS' market share worldwide.
ACCENTURE OPENS DELIVERY CENTER IN SAN ANTONIO...Accenture is opening a delivery center in San Antonio, Texas, that will provide business process outsourcing services to clients in Texas and around the world. The center will employ approximately 350 professionals, bringing the number of Accenture employees in Texas to nearly 3,500. The company currently has offices in Dallas, Austin and Houston.
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.
New Business
Computer Sciences Corporation announced that leading wealth management company AMP Limited has extended its relationship with CSC. The new four-year, $146 million contract extends the two companies’ original engagement, which started in 1993, making it one of the longest running information technology (IT) strategic outsourcing relationships in Australia.
Kenexa Government Solutions, a business unit of Kenexa was awarded the U.S.D.A. Forest Service recruiting contract on May 30, 2006. The U.S. Department of Agriculture Forest Service is a Federal agency that manages public lands in national forests and grasslands.
New Services
Siemens Business Services, Inc. announced significant new enhancements to its Infrastructure Management Services offerings. The offerings provide comprehensive data center, remote server management and managed voice services from multiple service delivery centers located across the globe.
Ceridian announced today that in early July it will launch Ceridian Risk Management Solutions, the most comprehensive suite of human resources risk management solutions available for companies with less than 300 employees.
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June 22, 2006
Top Stories
EDS COMPLETES MPHASIS ACQUISITION...EDS has completed the acquisition of a majority stake in MphasiS BFL Limited, a leading applications and business process outsourcing (BPO)services company based in Bangalore, India. EDS acquired 83 million shares (approximately 52%) of MphasiS for approximately US$380 million in cash. MphasiS will operate as an independent EDS company. With the addition of MphasiS and current expansion plans, EDS' total India work force is projected to exceed 20,000 by year end.
PEROT SYSTEMS TO OPEN FOURTH CENTER IN INDIA...Perot Systems Corporation plans to expand its resources and facilities in India to a fourth city, Coimbatore, with the opening of a new information technology center there in late summer. The company has operated facilities in India for the past 10 years, continuously expanding in Bangalore, Noida and Chennai.
TELETECH TO ACQUIRE DIRECT ALLIANCE...TeleTech Holdings, a leading global business process outsourcing (BPO)provider, announced a definitive agreement to acquire Direct Alliance Corporation, a wholly-owned subsidiary of Insight Enterprises, Inc., a large information technology provider.
ACS TO OPEN SALT LAKE CITY CALL CENTER...Affiliated Computer Services, Inc. will open a 47,000 square-foot facility in Salt Lake City in mid-August.
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.
New Business
Unisys Corporation announced that its Brazilian subsidiary will provide IT infrastructure outsourcing services to Brazil's Unibanco, one of the largest financial institutions in Latin America and the third largest private bank in Brazil. The five-year deal has a total potential value to Unisys of approximately $47 million.
Ness Technologies, Inc. has been awarded an outsourcing contract with Israel's Assuta Medical Centers, the largest private organization in Israel providing medical services. The project is valued at $16 million over 8 years.
Tikshoov, the largest provider of outsourced contact center services in Israel, has selected Onyx as its multi-tenant CRM platform. With over 2,500 staff operating 1,800 advanced contact center workstations from six independent locations in Israel, Tikshoov fields more than 200,000 information and sales calls for its clients every day.
Unisys Corporation's Netherlands subsidiary has expanded its relationship with long-time client REAAL Insurance through a new five-year outsourcing contract with a value estimated at $11.6 million (EUR 9.2 million). .
Everest Research Institute Research Brief: Do Hewitt's Problems Signal Trouble Ahead for the HRO Industry?
Hewitt Associates sent shock waves through the HRO industry last week when it announced the retirement of its CEO at year end and the resignation of its president of HRO, effective immediately. At the same time, the company announced that it will be reviewing its guidance for the third quarter and full fiscal 2006 pending a review of its HRO contracts. Wall Street moved Hewitt's stock price down by 8% to a 52-week low on the day on these announcements.
What are the implications of the Hewitt announcements for the industry as a whole? The Everest Research Institute has issued a Research Brief that provides a detailed look at the implications. Michel Janssen, President of Supplier Solutions at Everest Group, and Marc Pramuk, Vice President of Research, HRO, at Everest Research Institute, are available to discuss the report. Click here to download the complete brief.
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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.
June 15, 2006
Top Stories
HEWITT ASSOCIATES CEO TO RETIRE...Dale L. Gifford, who has served as chief executive officer of Hewitt Associates since 1992, has informed the company's board of directors of his plans to retire as chairman and CEO at the end of December. Hewitt's board is commencing an external search for a successor to Gifford.
ACS AUTHORIZES $1 BILLION STOCK REPURCHASE PLAN...Affiliated Computer Services, Inc. has authorized a share repurchase program of up to $1 billion of its Class A common stock effective immediately. At the current stock price, this program represents about eighteen percent of ACS' total common shares currently outstanding.
SYMPHONY SERVICES ACQUIRES VMOPLUS...Symphony Services has acquired VMOplus, a consulting company that focuses on helping organizations develop and optimize their global and distributed programs.
KEANE SETTLES HARASSMENT CLAIM...Keane Inc. agreed to pay its vice president of marketing $1.1 million to resolve claims of sexual harassment against Brian Keane, the company's former chief executive. Georgina Fisk, the vice president, is resigning her position on June 30. Brian Keane stepped down as CEO in May. The Boston firm also reached an unspecified settlement with an unnamed former employee who had also accused the former CEO of harassment.
GENPACT TO OPEN NEW PHILIPPINE CENTER...Genpact announced it will open its newest business-processing center in the Philippines this summer. Recruiting has begun at the 5,400 sq. metre facility in the Alabang suburb of Manila, where professionals will provide finance & accounting services, customer-service support, collections, and IT services to Genpact's increasing roster of global clients. It is the seventh country of operations for Genpact, formerly known as GE Capital International Services.
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.
New Business
Whirlpool Corporation and Accenture have entered into a five-year application outsourcing agreement in which Accenture will provide maintenance and support services for SAP applications related to demand chain, supply chain, HR and finance at Whirlpool’s operations in North America, Latin America, Europe and Asia.
Ness Technologies, Inc. has been awarded a contract by Mizrahi-Tefahot Bank, Israel's fourth largest banking group, worth approximately $4 million, to computerize the bank's provident funds for planholders.
Raytheon Company's subsidiary Raytheon Professional Services LLC (RPS) has begun work on a four-year contract to deliver managed learning services ("Learning Operations") to Pfizer Inc. Financial terms were not disclosed. RPS will provide logistics administration for learning events in the United States and United Kingdom for Pfizer Global Research and Development and Worldwide Development. RPS will also deliver help desk information support to Pfizer learners.
Affiliated Computer Services, Inc. has signed a one- year contract renewal, valued at $5.52 million, with the City of Riverside, California. Under terms of the outsourcing agreement, ACS will deliver information technology (IT) services to support the city's infrastructure, applications, and business objectives. There are five, one-year options for continuing IT services for a total potential contract value of over $30 million.
Fidelity National Information Services, Inc. announced a multi-year outsourcing agreement to provide application support and development services for ING Netherlands' savings products.
New Services
Plateau Systems, a provider of software for developing, managing and optimizing organizational talent, announced Plateau OnDemand, which it described as "the industry's first subscription-based talent management solution to deliver best-in-class performance, succession, and learning management capabilities in an affordable, fully managed solution."
Alliances
BancTec, a global provider of document and payment processing solutions, has entered an OEM partnership with Cognos, a major provider of business intelligence (BI) and performance management solutions, to provide enhanced analysis and reporting to BancTec's business process outsourcing (BPO) clients.
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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.
June 08, 2006
Top Stories
EDS SUCCEEDS IN BID FOR MPHASIS STAKE...EDS has succeeded in its efforts to acquire a majority stake of MphasiS BFL Limited, a leading applications and business process outsourcing (BPO) services company based in Bangalore, India. More than the required 83 million shares of MphasiS have been tendered in response to EDS' conditional open offer of Rupees 204.5 per share (approximately US$4.50), which closed on June 5. Total consideration for the transaction that gives EDS a majority stake in MphasiS is approximately US$380 million cash. The transaction is expected to be completed by the end of June, subject to administrative settlement procedures.
ACCENTURE TO PROVIDE GLOBAL HR SERVICES TO UNILEVER...Accenture will provide Unilever with a broad range of human resources services – from recruitment to payroll processing and performance management – in 100 countries under a business process outsourcing contract signed by both companies. The seven-year agreement will begin in July. Financial terms were not disclosed. Accenture will provide services to nearly 200,000 employees in more than 20 languages from delivery centers in Bangalore, Manila, Dalian, Bucharest, Prague and Curitiba.
RSM MCGLADREY FORMS GLOBAL UNIT...RSM McGladrey entered into a strategic agreement with Munich-based RSM Hemmelrath Gruppe, one of Germany's most respected legal and tax firms to create RSM McGladrey UK Ltd., an international tax consulting firm. The new entity will provide the foundation for RSM McGladrey's global international tax and cross-border transaction support business in eight countries.
CAPGEMINI LAUNCHES NORTH AMERICAN BRAND CAMPAIGN...Capgemini has launched the next wave of its brand advertising campaign in the United Sates and Canada. Themed "The Collaborative Business Experience" and designed to reach business and technology decision-makers, this investment in print, airport and online media expands Capgemini's commitment to enhance its market share in North America.
ACCENTURE OPENS NINTH DELIVERY CENTER IN INDIA...Accenture has launched a technology delivery center in Pune, India, for software outsourcing and systems integration services. The facility is Accenture's ninth delivery center in India, and represents further expansion of the company's Global Delivery Network.
KORN/FERRY AUTHORIZES NEW STOCK REPURCHASE...Korn/Ferry International has approved the repurchase of up to $25 million of Korn/Ferry stock in a common stock repurchase program. This program will commence following the completion of the company's $50 million stock repurchase program announced in December 2005, under which approximately $22 million remains authorized.
GENPACT OPENS PHILIPPINES CENTER...Genpact will open its newest business-processing center in the Philippines this summer. It is the seventh country of operations for Genpact, formerly known as GE Capital International Services.
New Business
Computer Sciences Corporation has won a task order to develop the Litigation Case Management System (LCMS) for the U.S. Department of Justice (DOJ). The award, which has a seven-month base period and four one-year options, is valued at approximately $42 million if all options are exercised and all incentives are achieved.
EDS is extending its nearly decade long relationship with EBS Dealing Resources, the world's leading provider of trading and market data solutions to the professional FX and precious metals communities. Financial details of the agreement were not disclosed. EDS will provide a range of IT services including management of the company's global network operations, field services and telecommunications.
Affiliated Computer Services, Inc. has signed a major contract with the Los Angeles County Metropolitan Transportation Authority (Metro) to implement and operate a regional transit smart card service center. The contract is for five-years valued at more than $31.5 million with two, two-year options and if exercised, will bring the total contract value to $60 million.
New Services
Unisys Corporation announced a major expansion of its open source capabilities with Unisys Open and Secure Integrated Solutions (OASIS), an integrated, certified set of software suites targeted specifically for enterprise class computing based on open standards and supported through Unisys global services and vertical-industry solutions capabilities.
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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.
June 01, 2006
Top Stories
OUTSOURCING CENTER NAMES EXCELLENCE AWARD WINNERS...Outsourcing Center, the premier source of information on all aspects of outsourcing, including this newsletter, announced today the eight winners of the 2006 Outsourcing Excellence Awards.
The eight winning relationships are:
Best BPO Hughes and ACS
Best ITO Vanguard Car Rental and Perot Systems
Best EU Invista and Freeborders
Best Financial Services Channel Life and Alfinanz
Best Healthcare St. Vincent Health System and Eclipsys
Best Business Challenge Citrix and HP Global Services
Best Offshore Delta Airlines and Wipro
Best Partnership BT and Accenture HR Services
An independent panel of industry experts rigorously reviewed the nominations, which came from companies that spanned the globe. The winners demonstrated outstanding business relationships in all components of their outsourcing engagements. The winners will be honored at a July 26-27 event that includes sailing on the Forbes Highlander Yacht, speaking in an educational morning seminar, participating in a round-table luncheon, and culminating at a black-tie dinner and awards ceremony in New York City.
ACCENTURE OPENS BPO CENTER IN WARSAW...Accenture has opened a new delivery center in Warsaw that will provide business process outsourcing (BPO) services in finance and accounting, supply chain management and human resources. When fully staffed, the delivery center will employ up to 1,000 highly skilled professionals speaking more than a dozen European languages.
UNISYS NAMES REGIONAL DIRECTOR...Unisys Corp. named Nick Wilson as vice president and managing director of the company's United Kingdom, Middle East and Africa regions. Wilson will report to Peter Blackmore, executive vice president and president of Worldwide Sales, Marketing and Technology.
WOMEN PRESIDENTS SEE OUTSOURCING GROWTH...Women presidents of multi-million dollar companies are expecting to see growth in revenues and employees in 2006, according to the Economic Survey conducted by the Women Presidents' Organization (WPO). WPO surveyed its membership and found that respondents expect growth in their businesses to occur through outsourcing and business acquisition.
New Business
The city of Minneapolis awarded Unisys Corp. a contract to provide managed services supporting the city's 911 computer-aided dispatch (CAD) system. Unisys will provide support and management services for the server, desktop and network environment on which the system runs to help ensure that this critical system is continually available to city employees so that they can respond to citizens' requests for emergency services. The five-year, fixed-price contract is valued at approximately $6.8 million.
Unisys also announced that it has received a three-year extension of its engagement to provide outsourced IT services to AIG Technologies, Inc. (AIGT), the information technology services provider for member companies of American International Group, Inc. (NYSE: AIG), world leaders in insurance and financial services. The contract extends services Unisys has provided AIGT since 2000.
HOCHTIEF, an international construction service provider, and Accenture have signed a five-year business process outsourcing agreement under which Accenture will manage HOCHTIEF’s sourcing and procurement function throughout Europe. Terms of the contract were not disclosed.
Microsoft Corp. and Group O Companies are announcing a long-term technology and services agreement for Group O to provide marketing, consumer and managed services for Microsoft Worldwide Operations. Group O is a privately held Hispanic-owned firm based in Milan, Ill.,specializing in rebates, call center, application development, printing, mailing, packaging and business process outsourcing services, with 1,200 employees and annual revenues of $240 million.
Affiliated Computer Services, Inc. has been awarded a two-year extension to its business process outsourcing (BPO) contract with AmeriHealth Mercy/Keystone Mercy Health Plan, the largest family of Medicaid managed care health plans serving nearly two million Medicaid members in eight states.
ACS was also awarded a one-year contract renewal with the City of Detroit, Michigan, for parking ticket processing and collections. The total contract renewal is worth $3.7 million.
Fidelity National Information Services, Inc. announced the signing of a multi-year outsourcing agreement with the new Nationwide Bank, a subsidiary of Nationwide Financial Services, Inc. to support the expansion of the company's banking products and services.
First Consulting Group (FCG) announced a multi-million dollar, four-year implementation and operation engagement with Continuum Health Partners' Beth Israel Medical Center in New York which will commence on August 1, 2006.
New Services
Digital River, Inc. announced a major release of its global e-commerce platform. The release, which includes an expanded self-service tool set, offers online merchants even more remote control over their outsourced e-commerce sites. The latest enhancements include powerful new site design tools, advanced site testing and optimization capabilities, and more robust merchandising controls.
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May 25, 2006
Top Stories
WAGE INFLATION IN OUTSOURCING MARKETS OVERSTATED...Wages for IT outsourcing (ITO) and Business Process Outsourcing (BPO) services providers in key offshore markets, including India, China and Poland, are increasing on average by 8 to 11 percent per year, which is nearly half of what has been commonly reported, according to new findings by Everest Research Institute. The lower figures reflect in part the efforts that offshore outsourcing suppliers have been making to control rising labor costs.
SYMBIO GROUP ACQUIRES HORIZON SOFTWARE...The Symbio Group, a provider of software development, testing, and globalization outsourcing services, has acquired Horizon Software, Inc. Headquartered in Atlanta, Horizon specialized in providing outsourced development services for web-based applications to U.S. and European clients, such as BellSouth and VeriSign, through its development center in Chengdu, China.
SYMPHONY SERVICES NAMES COO...Symphony Services has promoted Dr. Ajay Kela, former president of its India operations, to the position of chief operating officer (COO) and managing director. Amitava Roy succeeds Ajay as president of Symphony's India operations.
CROSS-SOURCING--FROM INDIA TO NEBRASKA...Xpanxion, an Atlanta-based provider of global software development services, has announced plans to relocate a segment of its software testing operations and quality assurance (QA) program from Pune, India to Kearney, Nebraska. The center is scheduled to open this summer and could ultimately bring dozens of high-tech jobs and hundreds of thousands of dollars in economic development to this rural Nebraska community.
DHL TO EXPAND IN RUSSIA...Deutsche Post World Net, owner of DHL, announced that it will invest 250 Million USD within the next four years to expand its express and logistics business in Russia.
OPI NAMES MARKETING DIRECTOR...Outsource Partners International, Inc. has today named Joanna Meronk its Director of Marketing and Communications. In this newly created position, Meronk will have responsibility for the ongoing development and management of OPI's brand and communications.
EDITOR'S NOTE:If you like blogs, take a look at blognoggle, a new web page I created to track the best business blogs on a single page. JB
New Business
ANA (All Nippon Airways), the seventh largest airline in the world, has chosen the Unisys AirCore reservation and departure control solution suite to propel its business operations into a new, open, Web-based environment. Migration to the new system is scheduled to begin in 2007 and it is expected to be in full production for ANA by 2012.
Unisys Corporation has selected DHL as its global lead provider for service parts logistics. Under the agreement, Unisys will consolidate movement and repair of equipment parts from more than 100 providers into a comprehensive solution, managed by DHL, that will benefit clients to whom Unisys provides technology support and maintenance services.
Accenture has signed a business process outsourcing agreement with Crestline Hotels & Resorts, one of the nation's largest independent hospitality management companies, to manage processes associated with Crestline's human resource, payroll and finance and accounting functions, including accounts payable, general ledger and financial reporting.
Beckman Coulter, a leading manufacturer of biomedical testing instrument systems, tests and supplies, has chosen Kenexa's employment process outsourcing solutions to manage its North American staffing operations.
New Services
Empagio announced the beta release of Empagio 6.0, a fully integrated, on-demand HRMS platform designed to help HR organizations become more strategic and customer-focused. Once certified for general release, the Empagio 6.0 platform will be deployed in Empagio's service center supporting its customers in delivery of HR outsourcing services.
Alliances
NetSuite, Inc. announced major partnerships with two industry-leading companies in Japan: Transcosmos,Japan's leading outsourced services provider; and Inspire Corporation, a prestigious IT venture capital firm and IT consultancy, headed by industry pundit Makoto Naruke.
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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.
May 18, 2006
Top Stories
ACS TO ACQUIRE INTELLINEX...Affiliated Computer Services, Inc. has signed an agreement to acquire Intellinex, LLC, an Ernst & Young LLP enterprise and leader in integrated learning solutions. The transaction is expected to close within 30 days and is subject to Hart-Scott-Rodino approval as well as other customary closing conditions.
EDS SHAKES UP EXECUTIVE TEAM...EDS announced that Chief Operating Officer Ron Rittenmeyer will become part of EDS’ Office of the Chairman, led by Chairman and Chief Executive Officer Mike Jordan and including President Jeff Heller. Rittenmeyer will assume responsibility for all day-to-day operations of the company. Steve Schuckenbrock, who has served as co-COO since 2005 and executive vice president of Global Sales and Client Solutions since 2004, will be leaving the company.
DIEBOLD ENDS OUTSOURCING RELATIONSHIP...Diebold, Incorporated will take over implementation and support responsibilities for its Oracle global enterprise resource planning (ERP) system as well as other IT-related functions, effective June 1, 2006. This decision ends the company's previous IT outsourcing agreement with a third-party provider, DC Outsourcing ITO L.P., an affiliate of Deloitte Consulting LLP.
ARAMARK RETAINS OUTSIDE COUNSEL...ARAMARK Corporation announced that the Special Committee of its board of directors has retained Credit Suisse Securities (USA) LLC as its financial advisor and Shearman & Sterling LLP as its legal counsel in connection with the previously announced proposal received by the board on May 1, 2006 from a group of investors led by Joseph Neubauer, Chairman and Chief Executive Officer of the company, to acquire all of the outstanding shares of the company for $32 per share in cash.
NCO GROUP GETS 'GOING PRIVATE' BID...NCO Group, Inc. has received a proposal from Michael J. Barrist, Chairman and Chief Executive Officer of the Company, to acquire all of the outstanding shares of the company for $27.50 per share in cash. Barrist intends to partner in this transaction with One Equity Partners II, L.P.
ACS LEADS IN NEW DEALS IN 2005...Affiliated Computer Services, Inc. heads a list compiled by Gartner Dataquest of the top 10 outsourcing vendors in terms of business process outsourcing (BPO) or information technology (IT) outsourcing contracts announced in 2005. ACS leads the list with 41 announced deals, followed by IBM with 39, CSC with 27, EDS with 24 and Accenture with 18.
MERCER REPORTS CLIENT GROWTH...Mercer HR Services, the outsourcing business of Mercer Human Resource Consulting, added 11 major clients during the first quarter of 2006. Since 2004, Mercer HR Services has shown a steady increase in new business wins, adding 27 new clients in 2004 and 36 in 2005. Over 70 new clients have been added since the launch of the business.
New Business
Unisys Corporation has signed a multi-million dollar contract with Cathay Pacific Airways to host the airline's core business applications. The contract is for three years, with an option to extend for another two. Unisys will move Cathay's reservations, departure control, and cargo platforms to the Unisys data center in Rhodes, just west of Sydney.
EDS has signed a $308 million, 81-month contract with the state of Florida to design, develop and implement a new-generation Medicaid Management Information System (MMIS). The EDS Florida interChange system will provide fiscal agent services to Florida's 65,000 Medicaid providers and 2.2 million Medicaid recipients, the fourth largest Medicaid program in the United States.
TechTeam Government Solutions, Inc. has been chosen by the Massachusetts Port Authority (Massport) to deliver network administration and engineering services to support several of its internal networks. TechTeam will provide network administration, switch, router, and microwave link maintenance, as well as technical network engineering and network management services. The estimated contract value is $2.8 million in revenue over the three-year period.
New Services
Perot Systems Corporation announced two new industry solutions that leverage the mySAP ERP 2004 application, introduced at SAPPHIRE '06 Orlando, SAP's international customer conference May 16-18. Targeted at mid-sized metal fabricators and chemical producers, the solutions address industry-specific challenges and can accelerate implementation of the mySAP ERP 2004 application. The best practices-based solutions can be implemented for a predictable price, offering an option with a lower delivered cost than the traditional implementation approach.
Patni Computer Systems Ltd. has become one of the first global companies to launch a composite application that has achieved "SAP xApps Certified - Powered by SAP NetWeaver" status. Its Inventory Optimizer solution helps companies in the CPG, pharmaceutical and retail industries lower costs through more efficient disposal of sluggish inventory.
Alliances
Axiom Systems and Wipro Technologies, Global IT Services division of Wipro Ltd announced an initiative to further invest in off-shore componentization by establishing a Service Component Factory in Bangalore, India.
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May 11, 2006
Top Stories
MALAYSIA LAUNCHES MAJOR SSO INITIATIVE...Malaysia has launched a major new initiative designed to raise its profile in the shared services and outsourcing (SSO) industry. An indication of how strategic the plan is for the Asia Pacific nation is the fact that it was unveiled as part of the World Congress on Information Technology 2006 in Austin last week by the Prime Minister himself--Datuk Seri Abdullah Ahmad Badawi. Outsourcing Malaysia will focus on business development, branding and marketing, policies and human resources and capabilities development for SSO companies across Malaysia. The Asia Pacific region and Malaysia in particular are poised to dramatically grow over the next decade as premier Global locations for Shared Services and Outsourcing (SSO), according to a study released in conjunction with the announcement by Frost & Sullivan. Both Dell Computers and Affiliated Computer Services, Inc. are opening facilities in CyberJaya, an Information Technology Park in Kuala Lumpur.
KEANE CEO STEPS DOWN...Brian Keane has resigned as president, chief executive officer and a director of Keane Inc. effective May 10, 2006. Prior to the announcement, the company had received employee allegations relating to Keane's personal conduct. Keane has denied any unlawful behavior. John J. Leahy has been appointed by the board as interim president and CEO, while it conducts a search for a permanent CEO.
ARAMARK EXPANDS IN CHINA...ARAMARK has expanded its presence in China with the completion of its acquisition of Golden Collar, a Beijing-based food service company. Golden Collar, with 1,600 employees, provides food service to more than 60 clients in four major Chinese cities.
ACCENTURE FINALIZES PECASO ACQUISITION...Accenture has completed its previously announced acquisition of Pecaso Limited, a leading information technology firm specializing in SAP human capital management (HCM) consulting and integration services for multinational corporations and governments.
UNISYS NAMES HEAD OF GLOBAL INDUSTRIES...Unisys Corp. named Brian Maloney president of Unisys Global Industries, a new organization that will combine the company's global financial services, commercial and public sector businesses (excluding the U.S. Federal Group) into one group. Maloney will report directly to Unisys CEO Joe McGrath.
SIEMENS NAMES CFO...Siemens Business Services, Inc., announced the appointment of Jeffrey S. Scholl to the post of Chief Financial Officer. As the head of Finance for the North American-based Siemens AG operating company, Scholl will be responsible for financial, IT and procurement functions including financial strategy and reporting.
FREEBORDERS NAMES EVP...Freeborders, a leading technology outsourcing provider from China, announced the appointment of Jim Reesing as Executive Vice President of Global Accounts and Operations.
New Business
Ariba has extended its outsourcing agreement with Lucent Technologies, a leading provider of communications systems, services and software. Under the terms of a multi-year, enterprise-wide renewal, Ariba will continue to provide complete management of Lucent's indirect spend in North America and Europe. Ariba has been serving Lucent since 2004.
Unisys Corporation announced that its Venezuelan subsidiary has begun work on a signed contract worth approximately $21 million with Movilnet Telecommunications, C.A., the largest mobile network operator in Venezuela. Under the terms of the two-year agreement which was signed in the fourth quarter 2005, Unisys will provide Movilnet with call center outsourcing services.
PFSweb, Inc. has been selected by Roots Canada Ltd., to provide a comprehensive e-commerce solution throughout Canada, effective immediately. Roots is Canada's leading athletic lifestyle brand offering a wide range of quality apparel, premium leather goods and accessories for men, women and children of all ages.
HP has been chosen as the global service provider for Compuware Corporation's software product fulfillment and supply chain management. The five-year agreement expands a longstanding relationship between the companies.
Australia's Jetstar Airways has renewed its outsourcing agreement for Navitaire's reservations and revenue management systems, enhancing services provided under a previous multi-year contract. The agreement includes new code-share booking and passenger processing capabilities to support Jetstar's recently announced international expansion plans.
Ness Technologies has been awarded a three-year contract by Plan, a global humanitarian child-focused organization. Under the terms of the contract, Ness will provide Plan with software development and support services on the latest Microsoft technologies, required for the first stage of Plan's dynamic new system.
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May 04, 2006
Top Stories
EDS SIGNS $1.7 BILLION DEAL WITH KRAFT...EDS announced a new seven-year, $1.7 billion global information technology (IT) services agreement with Kraft Foods Inc., the world's second-largest food and beverage company. To support Kraft's global operations, EDS will provide a broad range of IT services including data centers, hosting, telecommunications and workplace support services.
ARAMARK GETS 'GOING PRIVATE' OFFER...ARAMARK Corporation announced that its Board of Directors has received a proposal from a group of investors led by Joseph Neubauer, Chairman and Chief Executive Officer of the Company, to acquire all of the outstanding shares of the Company for $32 per share in cash. The Board has formed a Special Committee of independent directors to consider the proposal.
COVANSYS SELLS STAKE IN SUBSIDIARY...Covansys Corporation announced that its wholly owned subsidiary, Covansys India Limited, has entered into an agreement to sell a portion of its ownership in Fortune Infotech Limited to Fidelity National Financial, Inc., a provider of outsourced products and services to a variety of industries. Covansys will own 50.1 percent and Fidelity will own 45.5 percent of the common stock of Fortune Infotech after the sale.
ADP REPORTS REVENUES UP...Automatic Data Processing, Inc. reported 10% revenue growth, to $2.4 billion, and $0.61 earnings per share from continuing operations for the third fiscal quarter ended March 31, 2006.
HEWITT ASSOCIATES REPORTS SECOND QUARTER RESULTS...For the second fiscal quarter, Hewitt Associates reported net revenues declined 3%, to $676.2 million, from $694.0 million in the comparable prior-year quarter. Outsourcing revenues declined 5%, and consulting revenues increased 5%. Net income for the second quarter increased 17%, to $31.8 million, or $0.29 per diluted share, compared with $27.2 million, or $0.23 per diluted share in the prior-year quarter.
CERIDIAN NAMES SVP FOR BENEFIT SERVICES...Ceridian has named John Shade senior vice president, Ceridian Benefit Services. Shade was most recently the Chief Information Officer for UnitedHealth Group's Definity Health business, the largest consumer-driven health care organization in the industry.
PEROT SYSTEMS REVENUES GAIN...Perot Systems Corporation announced financial revenue for the first quarter was $542 million, an increase of 15% year-to-year over first quarter 2005 revenue of $473 million, and includes $18 million of revenue growth, equal to four percentage points, from acquisitions completed during the past twelve months. Earnings per share (diluted) was $.19.
New Business
Computer Sciences Corporation has signed a next generation information technology (IT) outsourcing services agreement with BAE Systems, the premier transatlantic defense and aerospace company. The new contract replaces the existing agreement that would otherwise expire in October 2006. The five-year contract is valued at approximately $1.9 billion.
Affiliated Computer Services, Inc. has signed a four-year, $100 million contract renewal with the State of Mississippi's Division of Medicaid.
Ariba, Inc. has been selected to provide outsourcing services by V&M STAR, North America's leading producer of seamless tubular products. Under the terms of the agreement, V&M STAR will use Ariba to manage indirect spend across 14 categories and drive its annual savings goals.
Global Transaction Services, a business unit of Citigroup Corporate and Investment Banking, has been selected by Federated Investment Counseling to be the service provider for the investment manager's retail separately managed accounts (SMA) business. Initially, this mandate involves 6,000 retail accounts totaling approximately $2 billion in assets under management.
Cognizant Technology Solutions has been selected by Publishers Circulation Fulfillment, Inc. (PCF) to deploy a complete end-to-end SAP IS-Media solution across the company's internal and external operations.
New Services
TippingPoint, a division of 3Com, launched a managed security service (MSS) for its TippingPoint Intrusion Prevention Systems (IPS), enabling enterprises to cost-effectively outsource and centralize the 24x7 management and monitoring of global, multi-site IPS deployments for a complete view of the organization's security health.
Alliances
SAS has partnered with RSM McGladrey, Inc. to provide midmarket commercial and public organizations with the benefits of financial domain expertise, business process consulting, and the power of SAS Financial Intelligence technology.
Wipro Technologies has entered into a strategic alliance with salesforce.com, inc. The alliance will focus on enterprise customer adoption of on-demand computing, spanning on-demand application consulting and implementation services, lifecycle management and support services, and in particular the salesforce.com AppExchange.
Integrien Corporation announced a unique partnership with MphasiS, a leading provider of IT and business process outsourcing services. Under terms of the agreement, MphasiS becomes one of Integrien's core development partners and will sell and implement Integrien's flagship integrity management solution, Integrien Alive, on a global scale.
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April 27, 2006
Top Stories
FISERV REPORTS STRONG FIRST QUARTER, NAMES NEW CFO...Fiserv, Inc. reported total revenues for the first quarter increased 13 percent to $1,096.7 million compared to $973.1 million in 2005. First quarter earnings per share were $0.64, compared to $0.71 per share in 2005. Adjusted earnings per share were $0.64 for the quarter compared to $0.52 for the first quarter of 2005...Fiserv also announced that Thomas Hirsch will become its new chief financial officer effective July 1, 2006, replacing Kenneth Jensen, who is retiring after 22 years with the company. Hirsch was also named executive vice president and appointed to the management committee, effective May 1, 2006. Jensen, who announced his retirement last November, has agreed to serve as a special consultant to the CEO following his retirement.
EARNINGS ROUND UP...Kelly Services, Inc. announced revenue for the first quarter of 2006 totaled $1.360 billion, an 8.9% increase compared to the $1.249 billion for the corresponding quarter in 2005. Net earnings for the quarter totaled $8.6 million, a 117% increase compared to $3.9 million reported for the first quarter of 2005. Diluted earnings per share were $0.24, an increase of 118% as compared to first quarter 2005 earnings of $0.11 per share...Amdocs Limited reported that second quarter revenue was $601.1 million, an increase of 23.1% from last year's second quarter. Net income was $81.8 million, or $0.38 per diluted share, compared to net income of $74.3 million, or $0.34 per diluted share, in the second quarter of fiscal 2005...Keane Inc.'s revenues for the first quarter were $243.6 million, an increase of 4.9 percent from revenues of $232.2 million for the first quarter of 2005. Net income for the quarter was $5.4 million, a decrease of 25.9 percent from net income of $7.3 million for the first quarter of 2005. Diluted earnings per share (EPS) for the quarter was $.09, compared to EPS of $.11 for the first quarter of 2005...Harte-Hanks, Inc. reported first quarter 2006 diluted earnings per share of $0.29 on revenues of $278.4 million. These results compare to diluted earnings per share of $0.29 on $268.3 million in revenue for the first quarter of 2005...The TriZetto Group, Inc. reported diluted earnings per share (EPS) for the first quarter of 2006 of $0.15, on revenue of $85.3 million. EPS performance was $0.01 better than the high end of the company's guidance range...Ceridian Corporation reported first quarter 2006 net earnings of $36.2 million, or $.24 per diluted share, on revenue of $384.3 million. For the first quarter of 2005, net earnings were $22.0 million, or $.15 per diluted share, on revenue of $357.4 million...EMCOR Group, Inc. reported first quarter income from continuing operations of $7.6 million, or $0.24 per diluted share, more than three times its income from continuing operations of $2.0 million, or $0.06 per diluted share, in the first quarter of 2005. Net income for the quarter was $7.0 million, or $0.22 per diluted share, compared to net income of $1.9 million, or $0.06 per diluted share in the first quarter of 2005...ICT Group, Inc. reported revenue for the first quarter of 2006 increased 20% to a record $113.1 million compared to $94.0 million in last year's first quarter. Net income was $2.8 million, or $0.21 per diluted share, compared to $1.1 million, or $0.08 per diluted share, in the prior-year period.
CONVERGYS WINS CRM MAGAZINE AWARD...Convergys Corporation announced today that CRM magazine selected Convergys as a 2006 Service Leader Award recipient for outsourcing services. This is the second consecutive year that Convergys has received this award.
New Business
Swedish airline Malmo Aviation has signed a five-year contract for Unisys to provide outsourced management of the company's IT operations. The five-year agreement has a value to Unisys of 24 million Swedish crowns ($2.9 million). Unisys will assume responsibility for managing Malmo Aviation's central business applications and help desk, and also provide technical support on site.
Intelligroup Inc. announced the signing of a seven-year, $24 million Infrastructure Outsourcing contract with Royal Greenland, which is one of the world's leading groups specializing in fishing, processing, production, marketing and distribution of seafood products.
R.R. Donnelley & Sons Company has been awarded a multi-year contract extension to produce 100% of Thomas Nelson's one and two color soft cover trade books.
New Services
IDC introduced two new products from its BPO research practice. The BPO Buyer Trends and Outlook service will explore worldwide purchasing trends in the BPO services marketplace. The Worldwide Services Contracts Analysis: BPO service will examine BPO services deals from both a business process and a core industry perspective.
Alliances
Onyx Software Corporation, a CRM vendor, announced a strategic alliance with Cognizant in which Cognizant will provide consulting services for Onyx implementations in rapidly growing vertical markets worldwide, including financial services and healthcare.
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April 20, 2006
Top Stories
INFOSYS INCREASES STAKE IN PROGEON...Infosys Technologies Limited announced an agreement with Citicorp International Finance Corporation to acquire its entire holdings in Progeon Limited, a majority-owned subsidiary of Infosys. Progeon is a provider (BPM) services to Global 1000 companies and is among the top 10 third-party BPOs in India. It has over 7,000 employees as of March 31, 2006. Infosys will buy all of Citi's holdings in Progeon (23% on a fully diluted basis) amounting to 8.75 million shares for approximately US$ 115.13 million. The purchase will be paid in cash and the transaction is expected to be completed by July 2006.
LUXOFT ACQUIRES ITCI...Luxoft announced the acquisition of New York City-based IT Consulting International (ITCI), a company which has been providing IT outsourcing, on-site staffing and project management services for Global 500 and middle market businesses since 1993. The combined company will have more than 1,500 employees worldwide, and combined revenue in 2005 of more than $45 million.
IBM EARNINGS IMPROVE IN FIRST QUARTER...IBM announced first-quarter 2006 diluted earnings per common share of $1.08 from continuing operations, compared with diluted earnings of $.85 per share in the first quarter of 2005, an increase of 27 percent. First-quarter income from continuing operations was $1.7 billion compared with $1.4 billion in the first quarter of 2005, an increase of 21 percent. Total revenues for the first quarter of 2006 of $20.7 billion decreased 10 percent (7 percent, adjusting for currency) from the first quarter of 2005.
UNISYS REPORTS LOSS...Unisys reported a first-quarter 2006 net loss of $27.9 million, or 8 cents per share, compared with a first-quarter 2005 net loss of $45.5 million, or 13 cents per share. Revenue for the first-quarter of 2006 increased 2% to $1.39 billion from $1.37 billion in the year-ago quarter.
AON CONSULTING NAMES CEO...Aon Consulting, the human capital and management consulting organization of Aon Corporation announced the appointment of Kathryn Hayley as chief executive officer of Aon Consulting U.S. Hayley, who has more than 25 years of experience in the consulting industry, has been with Deloitte Consulting LLP since 1984, serving in numerous leadership positions.
ACS INTEGRATES HR OUTSOURCING BUSINESSES...Affiliated Computer Services, Inc. has integrated its human resources outsourcing (HRO) businesses to improve service delivery and the company's ability to provide customized solutions. ACS provides HRO services for 3 million people, delivering services from more than 135 global locations in more than 60 countries and supporting 20 languages. ACS has named Howard Fine as Senior Managing Director of the newly integrated HRO business.
EMPLOYEASE PARTNERS WITH GOOGLE...Google has selected Employease as one of the first go to market partners for the new Google OneBox for Enterprise feature of the Google Search Appliance. All Google Search Appliances will be shipped with the capability to work with an uploaded Employease One Box for Enterprise module. Employee directory search is the first module from Employease for this appliance.
New Business
The Centers for Medicare & Medicaid Services (CMS) awarded EDS a one-year task order with four additional one-year options, potentially valued at $29 million if all extension options are exercised. The task order is the first to be issued to EDS under the CMS Enterprise Data Center Indefinite Delivery/Indefinite Quantity contract vehicle.
Affiliated Computer Services, Inc. has been awarded a multi-year renewal of its human resources (HR) business process outsourcing (BPO) contract with Lockheed Martin Corporation.
SOURCECORP, Incorporated has been awarded a five year, estimated $31 million, contract from the National Climatic Data Center (NCDC) of the National Oceanic and Atmospheric Administration (NOAA).
Alliances
Telcordia Technologies, Inc. and Accenture announced a strategic alliance to build and deliver end-to-end operations support, network management and business support solutions for communications service providers globally. Accenture has also been awarded a multi-year application outsourcing contract to provide Telcordia with applications development support services.
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April 13, 2006
Top Stories
HP GETS $236 MILLION IT SERVICES CONTRACT FROM AVAGO...Avago Technologies, the largest privately held semiconductor company in the world, has awarded HP a $236 million services contract to provide global information technology services and operations management. Under the ten year agreement, HP will provide application, server, network, desktop and print management, as well as IT help desk services.
ACCENTURE TO ACQUIRE PECASO LTD...Accenture has agreed to acquire Pecaso Limited, a privately held information technology firm specializing in SAP Human Capital Management consulting and integration services for multinational corporations and governments.
CEREDIAN CEO ANNOUNCES RETIREMENT...Ronald L. Turner, chairman, president and CEO, of Ceridian Corporation will retire from the company effective October 1, 2006.
New Business
Accenture has signed a seven-year contract to provide IT application development, implementation and support for Unilever across Europe. Financial terms of the contracts were not disclosed.
Cognizant Technology Solutions has expanded its strategic customer partnership with Dow Corning Corporation. Cognizant will implement a large-scale mySAP CRM 5.0 system, which will be tightly integrated with SAP's next generation NetWeaver platform.
CitiStreet is providing full defined contribution and defined benefit administration, along with health and welfare services to American Family Insurance, the nation's third-largest mutual property and casualty insurer. The agreement marks an expansion of the companies' long-standing business partnership; CitiStreet has provided defined contribution benefits outsourcing services to American Family Insurance since 1994.
Hewitt Associates will provide HR business process outsourcing (BPO) services to Catholic Health Initiatives, a national nonprofit health corporation. Hewitt has provided defined benefit outsourcing services to Catholic Health Initiatives since 2001 and benefits consulting services since 1989.
Affiliated Computer Services, Inc. has been awarded a renewed business process outsourcing (BPO) contract with PepsiAmericas. The three-year contract is valued at just under $5 million. PepsiAmericas is the second largest Pepsi bottler in the world with operations in the United States, Central Europe, and the Caribbean.
Equant has signed an outsourcing contract with Universal Music Group (UMG), the world's leading music company, to transform its current network into a fully managed IP solution. The five-year deal, spanning 48 countries, covers all elements of UMG's communications infrastructure, including global WAN and LAN, managed voice and IP Telephony, mobility, web hosting and vendor management.
New Services
NewMarket Technology Inc. announced plans to offer United States firms software development and maintenance support services provided by its operations in China. Software development outsourcing to China is projected to be a billion dollar industry. NewMarket launched operations in China last year and subsequently signed over $20 million in contracts with Chinese companies.
Hyrian, a recruitment process outsourcing (RPO) firm, announced it will provide Fortune 500-level RPO services to companies with 100+ employees through its new Hyrian OnDemand division. The company successfully handled 12,000 hires in 48 states last year alone and is on track to fill 20,000 positions this year. Increasingly
Alliances
Xerox Corporation and Exstream Software Inc. announced a partnership that will pair Xerox consulting and managed services with Exstream's enterprise personalization software, Dialogue, to help businesses improve customer relationships through the use of customized communications.
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April 06, 2006
Top Stories
EDS OFFERS $380 MILLION FOR INDIA BPO FIRM...EDS has made a conditional open offer to acquire a majority stake in MphasiS BFL Limited, a leading applications and business process outsourcing (BPO) services company based in Bangalore, India, for 204.5 Rupees (approximately US$4.58) per share in cash, pursuant to Indian securities regulations. This price represents an approximate 30-percent premium to the 26-week average price of MphasiS. The offer is contingent upon EDS acquiring 83 million shares, representing approximately 52 percent of current shares outstanding.
ACCENTURE COMPLETES SAVISTA ACQUISITION...Accenture has completed the acquisition of key assets of Savista, expanding Accenture's range of bundled, back-office business process outsourcing (BPO) capabilities to include those designed specifically for the middle market.
FREEBORDERS EXPANDS EXECUTIVE TEAM...Freeborders announced the expansion of its EMEA team with two executive appointments. Peter Bambridge joins as Vice President of EMEA and Tony King as Vice President of Operations and Delivery, EMEA.
ACS EARNS ISO CERTIFICATION...Affiliated Computer Services, Inc. has earned International Organization for Standardization (ISO) 20000 certification.
New Business
Computer Sciences Corporation has signed an information technology (IT) infrastructure outsourcing contract with Deutsche Leasing AG, a leading brand-independent leasing company in Germany. The contract is valued at $115 million (95 million euros) over 10 years.
Getronics has secured over $10 million in contracts with Chevron Corporation over the next two years. Services covered under the contracts include remote management of Chevron's North American network infrastructure, delivery of onsite services in core U.S. locations, as well as support for over 100 additional U.S. sites. In addition, Getronics will provide management and monitoring of SCADA, microwave, and other specialty tower devices for Chevron Pipe Line Company.
UNICCO Service Company, one of North America's largest integrated facilities services outsourcing companies, has received a contract to provide custodial and contractor management services for six Commonwealth of Virginia buildings located in the Capitol Complex in downtown Richmond.
New Services
Cognos announced new professional services initiatives for customers to help maximize value, improve performance and drive user adoption. The new professional services initiatives further address the growing demand for large-scale Cognos standardization and performance management deployments among enterprise customers.
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March 30, 2006
Top Stories
ACCENTURE REVENUES UP FOR QUARTER...Accenture reported net revenues for the second quarter, ended Feb. 28, 2006, of $4.10 billion, a 13 percent increase in local currency. GAAP diluted earnings per share were $0.11, including a pre-tax provision for future losses of $450 million related to the company's future deployment of systems for the National Health Service (NHS) in England. Absent the impact of the NHS provision, EPS were $0.38, above the company's previously stated expectations. Outsourcing net revenues were $1.64 billion, or 40 percent of net revenues, an increase of 13 percent in local currency and 8 percent in U.S. dollars.
PAYCHEX REPORTS RECORD QUARTER...Paychex, Inc. announced record net income of $114.5 million, or $0.30 diluted earnings per share, for the three months ended February 28, 2006, a 23% increase over net income of $92.8 million, or $0.24 diluted earnings per share, for the third quarter last year. Total revenues were $430.6 million, a 15% increase over $373.9 million for the same period last year.
PRUDENTIAL CAPITAL FUNDS OASIS OUTSOURCING...Prudential Capital Partners has provided $18 million of mezzanine and equity financing to Oasis Outsourcing, Inc., located in West Palm Beach, Fla., one of the largest professional employer organizations (PEOs) in the United States.
SYMPHONY CERTIFIED GOLD BY MICROSOFT...Symphony Services has attained Gold Certified Partner status in the Microsoft Partner Program with competencies in Custom Development Solutions and Data Management Solutions, recognizing Symphony’s expertise and impact in the technology marketplace.
New Business
Affiliated Computer Services, Inc. has been awarded a multi-million dollar information technology outsourcing contract with Burger King Corporation, a global leader in the restaurant industry. ACS will manage Burger King's entire global enterprise server and end-user computing environments, including enterprise server hosting and systems engineering, system management, print and mail services, and end-user computing.
The Florida Department of Law Enforcement (FDLE) has selected Unisys through a competitive bidding process to provide IT services supporting the first phase of FDLE's initiative to integrate vital law enforcement data from some 500 agencies across the state and region.
Colgate-Palmolive Company announced a seven-year agreement with IBM to provide procurement services for designated materials and services worldwide and to provide accounts payable services for Europe and North America.
The American Society for Training & Development has signed a multi-year partnership with Intrepid Learning Solutions to provide training design, development, delivery, and maintenance services for ASTD's certificate program.
Computer Sciences Corporation has won a task order to provide program management and information technology (IT) services to the Office of the Secretary of Defense, Program Analysis and Evaluation (PA&E).
The contract, which has a one-year base period and four one-year options, is valued at $38.8 million if all options are exercised.
Alliances
Workscape has formed a strategic alliance with Asparity Decision Solutions, a provider of online decision support and data services for the self-service marketplace to develop tools for Workscape's Outsourced Benefits Administration (OBA) clients.
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March 23, 2006
Top Stories
R.R. DONNELLEY ACQUIRES OFFICETIGER...OfficeTiger and R.R. Donnelley & Sons Company announced that the two companies have signed a definitive merger agreement in which RR Donnelley, the world's premier full-service global print provider and business solutions company, will acquire OfficeTiger in an all-cash deal.
NAVISITE GETS $70 MILLION LOAN...NaviSite, Inc. has entered into a commitment letter with Silver Point Finance for up to $70 million in a senior secured term loan facility and up to $3 million in a senior secured revolving credit facility. Silver Point Finance structures and provides custom financing to large and middle market companies. In addition, NaviSite has filed a request with the Securities and Exchange Commission to withdraw its registration statement on Form S-2 relating to the proposed public offering of NaviSite's common stock.
SECURITY TOP OUTSOURCING CONCERN...Information security has become a top concern among companies evaluating current and potential outsourcing relationships, according to a new study by management consulting firm Booz Allen Hamilton. Further, companies perceive a significantly higher security risk in working with offshore providers over those in the U.S., due to a lack of trust in legal and regulatory environments in developing countries.
AMBASSADOR SCHNABEL JOINS OPI BOARD...Ambassador Rockwell A. Schnabel has joined Outsource Partners International, Inc.'s Board of Directors. Ambassador Schnabel is currently an Advisory Director of Trident Capital and a co-founder of the firm. He was a Managing Director of Trident Capital from its inception in 1993 until 2001, when he was appointed by the U.S. Department of State to become Ambassador to the European Union.
KENEXA ADDS EVP...Roger Gaston has joined Kenexa as an executive vice president for its Employment Process Outsourcing (EPO) practice. Gaston will be responsible for Kenexa's Employment Process Outsourcing
operations worldwide. Gaston joins Kenexa from recently acquired StorageTek, a $2 billion company with 7,200 employees worldwide that delivers a broad range of storage solutions for digitized data.
New Business
Air China has chosen the Unisys Logistics Management System (LMS) to manage its air cargo operations. Under a five-year agreement, Unisys will also be providing hosting and integration services and will be working closely with Air China on the customization of services for the Chinese domestic marketplace, as well as the implementation and cut-over expected in March 2007.
The Transportation Security Administration (TSA) has awarded a multi-million dollar wireless services and equipment management contract to iSYS, LLC, ProfitLine's certified strategic sales partner. Through its partnership with iSYS, ProfitLine will help manage over 8000 wireless devices on an outsourced basis for TSA with an estimated contract valued at $38 million.
New Services
Ceridian announced that its Retirement Plan Services unit now provides recordkeeping services for new Roth 401(k) provisions. The new provisions allow 401(k) plan participants to defer a portion of their salary to the plan on an after-tax basis.
Alliances
Pegasystems Inc. and Kanbay Incorporated, a subsidiary of Kanbay International, Inc. announced an alliance to develop and deliver business process management (BPM) expertise to financial services organizations.
Convergys Corporation has been accepted into the "BPO Services Powered by SAP" program. Convergys, the largest holder of outsourced SAP licenses in the world, is expanding its 10-year SAP relationship to help accelerate and increase the global growth of its Employee Care business.
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March 16, 2006
Top Stories
UNISYS LAUNCHES CHINA CENTER...Unisys Corporation announced expansion of its China operations with the launch of a new global sourcing services and technology center in Shanghai. Over the next three years, the company expects to expand global sourcing operations in China beyond Shanghai and employ approximately 1,000 people.
SITEL REPORTS IMPROVED FINANCIAL RESULTS...SITEL Corporation announced preliminary financial results for the fourth quarter and year ended December 31, 2005. Quarterly income was $2.2 million, or 3 cents per share, compared with a loss of $32.5 million, or 44 cents, last year. Setting aside restructuring and impairment charges, its latest earnings were $6.9 million, or 9 cents per share. Revenue gained 20 percent to reach $290.8 million in the fourth quarter. North American business was up 31 percent to $155.9 million, while revenue was up 4 percent in Europe and 9 percent in Singapore, Australia and New Zealand. For the year, Sitel reported a profit of $5 million, or 7 cents per share, from a loss of $27.7 million, or 38 cents, in 2004. Annual revenue climbed 9 percent to $1.04 billion.
MELLON OPENS SAN FRANCISCO OFFICE...Mellon Global Professional Services (GPS) has opened an office in San Francisco as a result of a growing customer base on the West Coast. Located at 525 Market St., the office is headed by Ashish Kapur, a Mellon veteran experienced in helping clients achieve world-class business performance and maximize returns on technology investments. GPS currently has offices in Pittsburgh, Hartford, Boston, Toronto, London and India.
MERGER CREATES CHINA CONNECTION...Darwin Partners Inc., a provider of a range of IT services to Fortune 1000 companies has announced plans to merge with Suzsoft Co., Ltd., a China-based provider of outsourced application development, quality assurance, and localization services. The merger creates a 750-employee information technology firm with offices on both coasts and an outsourced software development facility in China.
TPI/EQUATERRA MARRIAGE OFF...TPI and EquaTerra announced that their merger agreement, signed in February 2006, has been terminated by mutual consent of the parties.
LAST CHANCE! FIRST FORBES/OUTSOURCING CENTER 2006 SPECIAL REPORT CLOSES MARCH 21...The first 2006 Forbes and Outsourcing Center special text/advertising report focused on best practices in managing outsourcing relationships--which will appear in the June 5 issue--closes for advertising reservations next week. (Ad materials are due three weeks later.) 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. A second report will appear in the November 27 issue with an ad close date of September 11. For more information and special rates for Outsourcing Alert subscribers, contact Jerry Bowles.
New Business
Computer Sciences Corporation has signed an information technology (IT) infrastructure outsourcing contract with Deutsche Leasing AG, a leading brand-independent leasing company in Germany. The contract is valued at $115 million (95 million euros) over 10 years.
Belo Corp., one of the nation's largest diversified media companies, has awarded IBM a comprehensive, 5 1/2-year outsourcing services contract to manage Belo's information technology infrastructure.
Equant has signed a seven-year contract to provide a complete outsourcing service to Getinge, a leading global provider of equipment and systems to customers within the health care, extended care and pharmaceutical industries and laboratories. The agreement includes data, fixed and mobile voice, hosting, helpdesk and end user equipment support to more than 100 locations in 30 countries worldwide...Equant has also signed an outsourcing contract with Universal Music Group (UMG), the world's leading music company, to transform its current network into a fully managed IP solution.
Affiliated Computer Services, Inc. has signed a three- year contract with the New Hampshire Department of Health and Human Services - Division of Child Support Services (DCSS) to provide child support payment services for the State. Valued at $3.9 million, the contract has two option years and begins in May 2006.
Lionbridge Technologies, Inc. announced a three-year master services agreement with Microsoft. The contract expands the long-standing relationship between the two companies and extends Lionbridge's role as a premier provider of localization, testing, eLearning, and application development services for prominent Microsoft products.
Outsourcing Fair in China, June 22-25
An outsourcing fair that will attract the cream of Chinese software outsourcing suppliers is slated to be held in Dalian, China from June 22-25, 2006. The conference, trade fair and exhibition is sponsored by the Government of China. The Minister of Commerce, the Minister of Information Industry and the Minister of Science and Technology as well as other important government officials will attend the fair, which is organized by the City of Dalian and is the only national, China-wide software outsourcing fair to take place in China in 2006.
Dalian, a modern, scenic port city of five million on the Pacific Ocean in North-East China, attracting visitors for its beauty and landscape, will be the backdrop for the fair.
Some specific conference topics include: system software, development platform and tools, application and business software, network security and IT Outsourcing and BPO. This exhibition represents an opportunity for overseas visitors to meet the top decision-makers in industry and government. This is the fourth annual fair. Previous fairs have been well-attended by Japanese and Korean Outsourcing buyers but to date the conference is not well-known to American and European outsourcers. Proceedings are either in Chinese or English with simultaneous interpretation. As well, free English interpretation facilities are available for individual discussions.
Further information about the fair is available on the official website.
As an additional feature of this fair, the City of Dalian, together with a Dalian outsourcing research institute, I-SOMTRI, will organize a 7 or 10-day China tour of Beijing, Shanghai and Xi’an, with one or two days in Dalian to view the fair and to meet CEO’s and businessmen of the leading Chinese outsourcing companies or, possibly, government officials. If you are in the outsourcing business and have an interest in joining such a tour as an individual businessman or as an outsourcing buying group, please contact Gordon Starr at the following e-mail address: gordon@informedia.net.cn.
New Services
Employease announced plans to launch a payroll offering targeted at companies with more than 1,000 employees. Employease Payroll will integrate a next-generation payroll offering with the company's on demand HR and benefits solutions. The offering, which will be available in 2007, will include the traditional features associated with payroll service bureaus such as tax filing, tax reporting and direct deposit.
Alliances
USi has expanded its global presence into Europe having signed a cooperation agreement with Dutch IT service provider Inter Access. The three-year agreement allows each company to deliver services from the other’s data center to clients with business transcontinental in scope. USi and Inter Access will also jointly explore new market opportunities and further develop their complementary services.
Advertising Information
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March 09, 2006
Top Stories
ACCENTURE ACQUIRES KEY SAVISTA ASSETS...Accenture has agreed to acquire key assets of Savista, expanding the range of bundled, back office business process outsourcing (BPO) capabilities the company offers to include those designed specifically for the middle market – organizations with fewer than 12,000 employees.
BISYS COMPLETES SALES OF INFORMATION SERVICES GROUP...BISYS has completed the previously announced sale of the companies that comprise its Information Services group to Open Solutions Inc. BISYS estimates total proceeds from the sale to be approximately $470 million, subject to final working capital and other adjustments.
CONVANSYS SELLS GOVERNMENT PRACTICE...Accel-KKR, a technology-focused private equity investment firm, and Saber Consulting, Inc., a privately-held, provider of software and services to the public sector, have acquired the State and Local Government Practice of Covansys Corporation in an all-cash transaction valued at up to $40 million.
PEROT SYSTEMS HIRES COUNTERINTELLIGENCE CHIEF...David W. Szady, former FBI assistant director for counterintelligence, has joined Perot Systems Corporation to lead the development and implementation of the company's intelligence sector strategy.
HEWITT OPENS CENTER IN POLAND...Hewitt Associates announced the opening of a new HR outsourcing center in Krakow, Poland.
DEADLINE: FIRST FORBES/OUTSOURCING CENTER 2006 SPECIAL REPORT CLOSES MARCH 21...Forbes and Outsourcing Center are teaming up again in 2006 for two special text/advertising reports focused on best practices in managing outsourcing relationships. The first report is scheduled for the June 5, 2006 issue of Forbes and will close for advertising participation on March 21. The second report will appear in the November 27 issue with a 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. For more information and special rates for Outsourcing Alert subscribers, contact Jerry Bowles.
New Business
The California Employment Development Department (Cal EDD) awarded Unisys Corporation a six-year, $31.6 million contract to upgrade and expand the tax engineering and modernization system that Unisys originally implemented in 2000. The system is central to the state's capability to calculate and collect employment taxes.
Affiliated Computer Services, Inc. has been awarded an information technology (IT) support contract with TIC Holdings, Inc. (TICH). TICH is a holding company for a leading heavy industrial construction contractor and other related contractor companies. ACS will provide a comprehensive SAP enterprise resource planning solution, including technology and infrastructure facilities, implementation, technical support and operations, network management, and help desk support services.
Alliances
Unisys and NEC have signed a series of alliance agreements to collaborate in server technology, research and development, manufacturing and solutions delivery. The agreements implement the alliance that was first announced on October 25, 2005.
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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.
March 02, 2006
Top Stories
OFFSHORING FUNDAMENTAL TO FAO...Offshoring has become fundamental to finance & accounting outsourcing (FAO), with every multi-process FAO contract signed in 2004 and 2005 featuring an offshore component. This and other key findings were reported by Everest Research Institute in its FAO Market Update, released today.
PEROT SYSTEMS ACQUIRES ENGINEERING SERVICES FIRM...Perot Systems Corporation has acquired eServ, LLC, a leading provider of high-end product engineering outsourcing services, for $21 million in cash, plus up to $7 million more if certain performance targets are met. The acquisition launches Perot Systems' expansion into outsourced engineering services, broadening the company's suite of BPO services for the automotive, manufacturing and industrial services segments.
CERIDIAN SIGNS 100TH MULTINATIONAL PAYROLL CLIENT...Ceridian reports it has signed its 100th multinational payroll client and now provides multinational payroll outsourcing solutions in 38 countries, across the manufacturing, technology and financial sectors, and other industries.
FIRST FORBES/OUTSOURCING CENTER 2006 SPECIAL REPORT CLOSES MARCH 21...Forbes and Outsourcing Center are teaming up again in 2006 for two special text/advertising reports focused on best practices in managing outsourcing relationships. The first report is scheduled for the June 5, 2006 issue of Forbes and will close for advertising participation on March 21. The second report will appear in the November 27 issue with a 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. For more information and special rates for Outsourcing Alert subscribers, contact Jerry Bowles.
New Business
Affiliated Computer Services, Inc. has been awarded an information technology (IT) outsourcing contract with MeadWestvaco Corporation (NYSE: MWV), a leading provider of packaging solutions. The 5-year contract is valued at more than $200 million.
Schroders, a global asset management company, has renewed its existing information technology (IT) outsourcing contract with Computer Sciences Corporation for an additional seven years and 10 months. The renewal is valued at approximately $235 million.
Accenture has signed a three-year, $179 million contract extension with the U.S. Department of Education for continued operation and maintenance of the Office of Federal Student Aid's Direct Loan and Pell Grant origination and disbursement processing system.
Accenture will provide Microsoft with credit and collection services in Europe, the Middle East and Africa (EMEA) under a five-year business process outsourcing contract the two companies signed recently. Financial details of the agreement were not disclosed.
Computer Sciences Corporation has expanded its information
technology (IT) outsourcing contract with United Technologies Corporation to include UTC operations in the People's Republic of China. CSC will provide infrastructure support for more than 1,000 desktop computers and help desk, security and e-mail services
for UTC locations in China.
Air Canada has extended contracts for two Unisys air cargo solutions -- Hosting & Integration Services and Cargo Portal Services (CPS) -- for three years. The contract extensions were signed in the fourth quarter of 2005.
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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.
February 23, 2006
Top Stories
EDS TO REPURCHASE $1 BILLION IN SHARES...EDS announced that its Board of Directors has authorized the company to repurchase up to $1 billion of its outstanding common stock over the next 18 months in open market purchases or privately negotiated transactions...AND NAMES CO-CHIEF FINANCIAL OFFICERS...EDS has named Ron Vargo and Tom Haubenstricker interim co-chief financial officers, effective March 15, 2006. They will share the functions currently performed by Bob Swan, who will be leaving the company on that date.
FUJITSU CONSULTING EXPANDS U.S. FOOTPRINT...Fujitsu Consulting will acquire Rapidigm, a Pittsburgh, PA-based privately-held information technology consulting and integration firm with offices in 22 major metropolitan markets in the United States and offshore development centers in India. The transaction is expected to close within 45 days, subject to various closing conditions and regulatory clearance.
MERCER HR SERVICES REPORTS MOMENTUM...Mercer HR Services, the outsourcing business of Mercer Human Resource Consulting, posted a strong finish in 2005, signing 36 new clients during the year, 21 in the last six months alone. New clients include MGM Grand, Chevron Phillips Chemical, E.ON U.S. LLC (formerly LG&E Energy LLC), CONSOL Energy Inc., and Arkema Inc.
MANPOWER LAUNCHES RE-BRANDING EFFORT...Manpower has launched a new brand across its global network of 72 countries to align with the range of services the company offers today. As part of the re-brand, Manpower rolled out a new logo, marketing materials and an advertising campaign. This is the first time that Manpower has undergone an extensive re-branding process since the company was founded in 1948.
PEROT SYSTEMS NAMES NEW HEAD OF GOVERNMENT UNIT...Perot Systems Corporation has named Jim Ballard president of its wholly-owned subsidiary, Perot Systems Government Services, Inc.
EPAM OPENS FRANKFURT OFFICE...EPAM Systems, the leading provider of software engineering outsourcing services in Central and Eastern Europe, announced the opening of its German office in Frankfurt am Main.
CORRECTION: An item in last week's Outsourcing Alert erroneously reported that Accenture had named a new CEO. The company has named CEO William D. Green to the additional position of chairman, effective Sept. 1.
FIRST FORBES/OUTSOURCING CENTER 2006 SPECIAL REPORT CLOSES MARCH 21...Forbes and Outsourcing Center are teaming up again in 2006 for two special text/advertising reports focused on best practices in managing outsourcing relationships. The first report is scheduled for the June 5, 2006 issue of Forbes and will close for advertising participation on March 21. The second report will appear in the November 27 issue with a 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. For more information and special rates for Outsourcing Alert subscribers, contact Jerry Bowles.
New Business
Ness Technologies, Inc., a global provider of IT services and solutions, has been awarded a ten-year contract by the Tel Aviv-Jaffa municipality, worth approximately $19 million, to establish a municipal tax billing and collection system.
Affiliated Computer Services Inc. has been awarded a renewed information technology outsourcing (ITO) contract with Triad Financial Corporation, a leader in the non-prime automobile financing industry. The three-year renewal is valued at $16.9 million.
TechTeam Global, Inc. announced a three-year contract renewal, effective through August 31, 2008, with RouteOne LLC to continue providing single-point-of-contact (SPOC) support services for RouteOne's Credit Application Management System (CAMS).
New Services
NewlineNoosh, a provider of print sourcing and procurement solutions, announced its new Business Benefit Assessment (BBA) service for print and issued an ROI Assurance Guarantee challenge -- NewlineNoosh's BPO service for print will deliver the agreed-upon target ROI or the company will refund the full amount of the print assessment.
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.
February 16, 2006
Top Stories
ACCENTURE NAMES NEW CEO...The board of directors of Accenture (NYSE: ACN) has named CEO William D. Green, 52, to the additional position of chairman, effective Sept. 1. He will succeed Joe W. Forehand, who will retire as Accenture’s chairman on Aug. 31.
CERIDIAN REPORTS QUARTERLY, YEARLY RESULTS...Ceridian Corporation reported fourth quarter 2005 net earnings of $46.7 million, or $.32 per diluted share, on revenue of $379.5 million. Net earnings for the quarter were $11.0 million, or $.07 per diluted share, on revenue of $361.3 million. For the year ended December 31, 2005, net earnings were $127.9 million, or $.86 per diluted share, on revenue of $1,459.0 million. Net earnings were $36.9 million, or $.24 per diluted share, on revenue of $1,320.4 million.
LUXOFT NAMED TO GLOBAL SERVICES 100...Luxoft, Inc., Russia's leading software developer and IT services exporter, was named to the 2006 "Global Services 100" list of the world's most innovative business and technology service providers by Global Services magazine. The company was ranked as one of the "Top 5 to Watch in Central & Eastern Europe." This is Luxoft's second consecutive year on the list, known last year as the Offshore 100.
EMPLOYEASE POSTS RECORD QUARTER...Employease, a leading provider of on-demand HR, benefits administration and outsourcing solutions, posted record results for the three months ending December 31, 2005. Revenues grew 62 percent compared to the three months ending December 31, 2004. The quarter marked the company's 33rd consecutive quarter of revenue growth.
HUNTON & WILLIAMS ADDS PARTNERS...James A. Harvey, James E. Meadows and Karen M. Sanzaro have recently joined the Global Technology and Sourcing Practice group of Hunton & Williams LLP in the firm’s Atlanta office.
FIRST FORBES/OUTSOURCING CENTER 2006 SPECIAL REPORT CLOSES MARCH 21...Forbes and Outsourcing Center are teaming up again in 2006 for two special text/advertising reports focused on best practices in managing outsourcing relationships. The first report is scheduled for the June 5, 2006 issue of Forbes and will close for advertising participation on March 21. The second report will appear in the November 27 issue with a 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. For more information and special rates for Outsourcing Alert subscribers, contact Jerry Bowles.
New Business
Computer Sciences Corporation has signed a seven-year, $8.9 million agreement with Salem Hospital Regional Health Services of Salem, Ore. to provide managed hosting services to support the hospital’s Epic Systems clinical applications.
BISYS has been selected by four fund advisory firms to provide a full range of mutual fund support through their domestic and offshore fund services operations: Giant 5 Funds, PARADIGM Global Advisors LLC, Prusik Investment Management LLP and Wayne Hummer Asset Management Company.
Buck Consultants, an ACS company and one of the world's leading human resource and benefits consulting firms, has signed a contract with the Pension Benefit Guaranty Corporation (PBGC) to continue providing benefit consulting and administration services. The Buck team has provided services to PBGC for more than 15 years.
Alliances
Tata Consultancy Services has entered into a 5-year Research and Development collaboration with Stanford University, one of the leading academic institutions in the US, for research in the area of data privacy.
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.
February 09, 2006
Top Stories
EQUATERRA AND TPI MERGE...Outsourcing advisory firms EquaTerra and TPI, Inc. announced the signing of a merger agreement. Closing is anticipated later this month. The merged firm will operate under the name Veritage. Ed Glotzbach will serve as CEO, and Mark Toon will be president and COO.
EARNINGS WRAPUP...For the first fiscal quarter, Hewitt Associates, Inc. reported net revenues (revenues before reimbursements) declined 1%, to $701.0 million, from $709.0 million in the comparable prior-year quarter. Outsourcing revenues declined 3%, and consulting revenues increased 6%. The current quarter was impacted by a $16 million decline in third-party supplier revenues, and the net unfavorable effects of foreign currency translation of $6 million. Acquisitions contributed $3 million of revenue in the quarter...Perot Systems Corporation announced financial results for the fourth quarter and full year of 2005. Revenue for the fourth quarter was $527 million, an increase of $61 million, or 13% year-to-year, and includes $14 million of revenue from acquisitions completed during the past year. Revenue for the full year of 2005 was $2 billion. Earnings per share (diluted) for the fourth quarter of 2005 was $.22, and full year 2005 earnings per share (diluted) was $.91...ARAMARK Corporation reported record sales of $2.9 billion for the first quarter of 2006, a 7 percent increase over the prior year quarter. Reported net income was $93 million and diluted earnings per share were $0.50...EDS reported fourth quarter net income of $112 million, or 21 cents on a per share basis, versus net income of $53 million, or 10 cents per share, in last year's fourth quarter. For full-year 2005, EDS posted earnings of $150 million, or 28 cents per share, versus earnings the prior year of $158 million, or 32 cents per share.
CLICK COMMERCE ACQUIRES ELANCE ASSETS...Click Commerce, Inc. has acquired substantially all of the operating assets of Elance, Inc.'s on-demand e-commerce solutions for services business. The acquisition enhances Click Commerce's supply chain management solutions for the extended enterprise by adding new on-demand collaborative commerce capabilities that enable companies to find, evaluate, purchase, manage, and pay contractors and third-party service providers.
FIRST FORBES/OUTSOURCING CENTER 2006 SPECIAL REPORT CLOSES MARCH 21...Forbes and Outsourcing Center are teaming up again in 2006 for two special text/advertising reports focused on best practices in managing outsourcing relationships. The first report is scheduled for the June 5, 2006 issue of Forbes and will close for advertising participation on March 21. The second report will appear in the November 27 issue with a 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. For more information and special rates for Outsourcing Alert subscribers, contact Jerry Bowles.
New Business
Perot Systems Corporation announced that its government services subsidiary was awarded a Blanket Purchase Agreement (BPA) by the U.S. Coast Guard with an estimated value of $73 million over a five-year performance period to provide LAN/WAN support to its Office of Information Systems and Infrastructure.
Wipro Technologies (WIT) announced the signing of a global service contract with GM designed to integrate the company’s Middleware Systems and Information Systems and Services (IS&S) software tools around the world. The five-year agreement, terms of which were not released, was finalized in January 2006 and will be included in Wipro’s future new contract totals.
The National Aeronautics and Space Administration's (NASA) Langley Research Center (LaRC), Hampton, Va., awarded Unisys a cost-plus-fixed-fee contract with an estimated value of up to $49.2 million for Simulation and Flight Information Technology Services. The company has served NASA for 30 years.
ICG Commerce has been engaged by The Goodyear Tire & Rubber Company in a North American procurement initiative, launched to support the company's commitment to achieving cost reduction goals. As part of the engagement, ICG Commerce is partnering with the company's internal procurement organization to drive cost reductions that are expected to have a multi-million dollar impact on the company's bottom line.
Affiliated Computer Services, Inc. has been awarded a business processing outsourcing (BPO) contract providing call center services for Johns Hopkins HealthCare.
New Services
BISYS announced the launch of its BoardAssistT suite of services. The program delivers a broad range of support for independent directors aimed at providing them with an objective source for research, educational seminar modules and industry information.
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February 02, 2006
Top Stories
GM LAUNCHES $15 BILLION RE-SOURCING INITIATIVE...General Motors has announced one of the world’s largest IT re–sourcing initiatives, with major contracts going to EDS, HP, Capgemini, IBM, Compuware Covisint and Wipro.
EDS, which has been GM's main IT provider for the past two decades, won the majority share of the new five-year, multibillion-dollar systems integration services awards. With this agreement, plus other business that was not part of the recompete, EDS now expects $1.2 billion to $1.4 billion in annualized revenue from GM over the next five years.
HP was awarded more than $700 million in information technology services contracts over a five-year period. The agreement spans global product development, manufacturing and quality, GMAC customer and dealer information systems, and global SAP enterprise architecture management support.
GM selected Capgemini to assist its Information, Systems and Services organization to support some of the program’s key strategic elements, including the management of enterprise–wide application integration, which provides enterprise–level strategic planning, architecture, program management and verification/ validation services. Capgemini pursued six GM contracts and was awarded all six.
UNISYS NARROWS LOSS...Unisys Corp. reported that its quarterly loss shrank to $31.1 million, or 9 cents a share, from $34.9 million, or 10 cents a share, a year earlier. The latest results included a tax provision of $58.3 million and a pension expense of 11 cents a share. Excluding pension costs, Unisys said it would have posted earnings of $8.1 million, or 2 cents a share.
HOLDING COMPANY ACQUIRES EMPAGIO...HALO Technology Holdings, an enterprise software holding company, has entered into a definitive agreement to acquire Empagio, Inc. and its SymphonyHR hosted solution. Terms of the acquisition were not disclosed. Following completion of the transaction, HALO intends to integrate Empagio with additional HR solutions already within its portfolio to create a premier human resources solutions provider.
FIRST FORBES/OUTSOURCING CENTER 2006 SPECIAL REPORT CLOSES MARCH 21...Forbes and Outsourcing Center are teaming up again in 2006 for two special text/advertising reports focused on best practices in managing outsourcing relationships. The first report is scheduled for the June 5, 2006 issue of Forbes and will close for advertising participation on March 21. The second report will appear in the November 27 issue with a 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. For more information and special rates for Outsourcing Alert subscribers, contact Jerry Bowles.
New Business
The Ministry of Justice in Bavaria, Germany's largest state, has extended its IT outsourcing contract with Unisys Germany through the end of 2008 for services to modernize and manage the Ministry's IT infrastructure. The multimillion-dollar extension was signed in the fourth quarter of 2005.
MicroTRAK GPS, Inc., a leading provider of Global Positioning Systems (GPS) technology and products has selected Plano, Texas-based Perot Systems Corporation to deliver full Information Technology (IT) infrastructure and business process outsourcing services as part of a new two-year contract.
Affiliated Computer Services, Inc. has been awarded a renewed business processing outsourcing (BPO) contract with Aetna, a leading provider of insurance and employee benefits products. The three-and-a-half- year contract is valued at $56 million.
New Services
Acxiom Corporation announced the release of a new suite of risk mitigation and fraud prevention solutions that combine Acxiom’s comprehensive data resources and data integration technology with enhanced analytics. The new Acxiom Insight suite of 12 services is a result of Acxiom’s recent acquisition of InsightAmerica, which has offered risk mitigation and fraud prevention services to thousands of clients for more than ten years.
Alliances
Systemware, Inc. and Cincom Systems, Inc have formed an alliance to provide comprehensive document automation solutions for clients seeking to streamline and simplify the management of entire document lifecycle processes from document composition to document management.
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.
January 26, 2006
Top Stories
EVEREST GROUP MARKS 15TH YEAR WITH EXPANSION...Everest Group, a leading provider of strategic advisory services that help companies worldwide harness the power of outsourcing, advised on approximately 20 percent of the major outsourcing transactions announced in 2005, which are estimated at $75 billion in total contract value. Everest Group also launched the Everest Research Institute, made a substantial investment in its human resources outsourcing (HRO) practice group in the US and Canada, and expanded its international capabilities with new office openings in London and New York.
ADP REPORTS 9% REVENUE GROWTH IN SECOND QUARTER...Automatic Data Processing, Inc. reported 9% revenue growth, to $2.2 billion, and $0.47 earnings per share from continuing operations for the second fiscal quarter ended December 31, 2005.
ACXIOM REPORTS RECORD QUARTER...Acxiom Corporation announced financial results for the third quarter of fiscal 2006 ended December 31, 2005. Revenue for the quarter was $347.4 million, income from operations was $52.7 million, pre-tax earnings were $44.0 million, and diluted earnings per share (EPS) were $0.31. All represent record quarterly performances in the company’s history.
EDS COMPLETES A.T. KEARNEY SALE...EDS announced it completed the sale of its global consulting subsidiary, A.T. Kearney, to the firm’s management, effective January 23, 2006.
BEARINGPOINT NAMES EMEA CHAIRMAN...BearingPoint, Inc. has named Keith Burgess as the company’s Chairman of Europe, Middle East and Africa (EMEA), a newly created position. In addition to 30 years at Accenture, where he was most recently a Worldwide Managing Partner, Burgess has held several distinguished industry positions in recent years.
FIRST FORBES/OUTSOURCING CENTER 2006 SPECIAL REPORT CLOSES MARCH 21...Forbes and Outsourcing Center are teaming up again in 2006 for two special text/advertising reports focused on best practices in managing outsourcing relationships. The first report is scheduled for the June 5, 2006 issue of Forbes and will close for advertising participation on March 21. The second report will appear in the November 27 issue with a 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. For more information and special rates for Outsourcing Alert subscribers, contact Jerry Bowles.
New Business
Triad Hospitals, Inc., Perot Systems Corporation and McKesson Corporation announced a $1.3 billion healthcare information technology initiative to support Triad's clinical excellence and business transformation programs. Perot Systems will support the transformation initiative with an IT outsourcing agreement across all Triad facilities, including Triad's corporate office. The 10 year agreement, with an expected total contract value of $1.2 billion, is highlighted by the implementation of a suite of standardized clinical, financial and enterprise resource planning (ERP) applications. The Everest Group's healthcare practice assisted Triad in several aspects of this landmark agreement, from transaction structure to supplier selection and negotiations.
Pan-American Life Insurance has signed an information technology (IT) outsourcing agreement with CSC to support its U.S. and Latin American operations. CSC estimates the value of the 7.5-year contract to be approximately $27 million.
Affiliated Computer Services, Inc. has been awarded a business process outsourcing (BPO) contract to process student loans with KeyBank National Association. KeyBank is one of the nation's largest bank- based financial services companies and the seventh-largest education lender in the United States.
New Services
Keane, Inc. announced the successful roll-out of Productivity Insight, its state-of-the-art outsourcing governance and performance management platform on 14 of its applications outsourcing engagements. Productivity Insight combines Keane's best practices, workflow automation, real-time metrics capture and powerful reporting capabilities.
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.
January 19, 2006
Top Stories
ACS AFFIRMS NO SALE...Affiliated Computer Services announced that recent unsolicited discussions with a group of private-equity investors regarding a possible sale of the company have ended. ACS has been considering alternatives to enhance shareholder value including the discussions with a group of private-equity investors, as well as the possible dual class recapitalization proposal described in the company's September 30, 2005 proxy statement.
MELLON REPORTS FOURTH QUARTER EPS OF $.50...Mellon Financial Corporation reported income from continuing operations of $208 million, or 50 cents per share, in the fourth quarter of 2005. This compares to income from continuing operations of $199 million, or 47 cents per share, in the fourth quarter of 2004, and $196 million, or 47 cents per share, in the third quarter of 2005.
PAYCHEX EXECUTIVE CHANGES...Paychex, Inc. announced the retirement of the company's Vice President of Human Resource Services (HRS) Operations and the appointment of her successor. Additionally, the company named a new Vice President and Chief Legal Officer.
PLAN NOW F0R THE FORBES/OUTSOURCING CENTER 2006 SPECIAL REPORTS...Forbes and Outsourcing Center are teaming up again in 2006 for two special text/advertising reports focused on best practices in managing outsourcing relationships. The first report is scheduled for the June 5, 2006 issue of Forbes and will close for advertising participation on March 21. The second report will appear in the November 27 issue with a 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. For more information and special rates for Outsourcing Alert subscribers, contact Jerry Bowles.
New Business
Unisys Corporation has received a contract from Countrywide Financial Corporation, a leading provider of diversified financial services, to provide IT outsourcing services. Under the terms of the three-year agreement, Unisys will provide outsourced management and support services for more than 80,000 devices used by more than 30,000 Countrywide employees at more than 800 sites in the United States.
EDS and United Airlines announced a 10-year information technology (IT) services contract to upgrade the airline’s technology base while reducing its operating costs. EDS will provide desktop, helpdesk and managed services for the airline. In addition, EDS will upgrade all aspects of United’s end-user computing and communications environments in offices, reservations and airports.
Lucent Technologies announced a four-year managed services agreement worth more than $10 million to operate and manage the U.S.-based network facilities of Pacific Crossing Limited (PCL). PCL owns and operates the PC-1 trans-Pacific fiber optic cable, one of the two fastest and largest telecommunications cables between the U.S. and Japan.
Lanier Worldwide, Inc. has signed an agreement with the University of California, the largest public research university system in the world. The five year agreement began May 1, 2005 and covers Lanier digital multifunction products (MFPs) for the University’s 10 campuses, five medical centers, and three National laboratories.
ADP Clearing & Outsourcing Services, Inc., a division of ADP, has been selected by Multi-Bank Securities, Inc. to clear its fully disclosed business. Multi-Bank signed a long term contract with ADP Clearing to support its institutional fixed-income trading and CD underwriting for credit unions.
BISYS will provide Allstate with long-term care products and services to Allstate's national agency sales force of approximately 13,600 exclusive agents and financial professionals.
Alliances
Salesforce.com and Tata Consultancy Services (TCS) announced the formation of strategic alliance in which TCS, becomes a global strategic SI partner of salesforce.com, and will develop and deploy on-demand business applications on the salesforce.com AppExchange.
SSA Global announced the deployment of a financial management and human resources solution that is enabling Savista, LLC, a leading provider of Business Process Outsourcing (BPO) services to the mid-market, to offer the first integrated finance and accounting (F&A) and human resources (HR) outsourcing services exclusively for the mid-market.
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January 12, 2006
Top Stories
ACCENTURE REPORTS STRONG FIRST QUARTER...Accenture reported that net revenues for the first quarter of fiscal 2006, ended Nov. 30, 2005, were $4.17 billion, a 12 percent increase over the same period last year. Diluted earnings per share were $0.36, an increase of 20 percent on an options-adjusted basis. Due to discounted share repurchases and redemptions in the first quarter, Accenture revised upward its expectations for EPS for the full fiscal year to the range of $1.52 to $1.57.
INFOSYS THIRD QUARTER PROFIT UP 31%...Infosys Technologies, India's second-largest software developer, reported that its third-quarter profit gained 31 percent. Net income rose to 6.49 billion Indian rupees, or $146 million, in the three months to Dec. 31, from 4.97 billion rupees a year earlier.
NEW CEO AT FEDEX KINKO...Gary Kusin, president and chief executive officer of FedEx Kinko's Office and Print Services, will leave the company at the end of January and be succeeded by Kenneth A. May, executive vice president and chief operating officer.
OPI HITS 1,000-EMPLOYEE MILESTONE...Outsource Partners International, Inc. (OPI), the largest business process outsourcing firm dedicated solely to finance and accounting functions, announced today that it has achieved the major milestone of more than 1,000 employees worldwide.
PLAN NOW F0R THE FORBES/OUTSOURCING CENTER 2006 SPECIAL REPORTS...Forbes and Outsourcing Center are teaming up again in 2006 for two special text/advertising reports focused on best practices in managing outsourcing relationships. The first report is scheduled for the June 5, 2006 issue of Forbes and will close for advertising participation on March 21. The second report will appear in the November 27 issue with a 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. For more information and special rates for Outsourcing Alert subscribers, contact Jerry Bowles.
New Business
Perot Systems Corporation announced that Severstal North America, a wholly owned subsidiary of OAO Severstal, Russia's second largest steelmaker, has selected the company to provide full IT outsourcing services as part of a six-year, $53 million Information Technology services contract renewal.
Affiliated Computer Services, Inc. announced that it has been selected by the Zurich transportation authority (Verkehrsbetriebe Zurich, VBZ) to deliver a state-of-the-art automated fare collection system. The contract has a potential worth of CHF 63 million (Swiss francs), or approximately $49 million.
Unisys Corporation has strengthened a seven-year relationship as BT Wholesale's Messaging provider with the announcement of a series of new contract wins, totaling approximately GBP 1.6 million. New elements include the provision of a flexible converged fixed and mobile voicemail service, a new messaging platform for BT corporate customers, and the provision of a celebrity voice that will be used in conjunction with the BT Text Messaging Service.
Affiliated Computer Services, Inc. has been selected by the Metropolitan Transit Authority of Harris County (MTAHC) in Houston, Texas, to install a new contact-less ticketing system for the area's bus and light rail transportation network. Valued at $14 million, the contract calls for the roll out of the new system by the middle of 2006.
New Services
BISYS announced it now offers comprehensive hedge fund tax reporting for non-German hedge funds. The offering is in full compliance with the German Investment Act and Investment Tax Act, which took effect on January 1, 2004, overhauling the tax treatment of investments in non-German investment funds.
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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.
January 05, 2006
Top Stories
PAYCHEX ANNOUNCES RECORD QUARTER...Paychex, Inc. announced record net income of $112.6 million, or $0.30 diluted earnings per share, for the three months ended November 30, 2005, a 30% increase over net income of $86.9 million, or $0.23 diluted earnings per share, for the second quarter last year. Total revenues were $399.8 million, a 15% increase over $347.3 million for the same period last year.
FIDELITY NATIONAL FINANCIAL TO ACQUIRE SEDGWICK...Fidelity National Financial, Inc. announced the signing of definitive agreements to acquire Sedgwick CMS Holdings, Inc., an industry leading provider of outsourced insurance claims management services to large corporate and public sector entities.
WIPRO TO ACQUIRE PAYMENTS COMPANY...Wipro Limited has signed a definitive agreement to acquire mPower Inc, a Princeton, New Jersey, headquartered company with a development center in Chennai and MPACT Technology Services, based in Chennai, for an all cash consideration of $28 million.
PFSWEB, ECOST LAUNCH MERGER WEBSITE...PFSweb, Inc. and eCOST.com have launched a new website that provides a central destination for information related to their definitive merger agreement announced November 29, 2005. The website includes a joint letter to shareholders, a PowerPoint presentation and other features that describe the tax-free, share-for-share transaction.
PLAN NOW F0R THE FORBES/OUTSOURCING CENTER 2006 SPECIAL REPORTS...Forbes and Outsourcing Center are teaming up again in 2006 for two special text/advertising reports focused on best practices in managing outsourcing relationships. The first report is scheduled for the June 5, 2006 issue of Forbes and will close for advertising participation on March 21. The second report will appear in the November 27 issue with a 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. For more information and special rates for Outsourcing Alert subscribers, contact Jerry Bowles.
New Business
The Transportation Security Administration (TSA) of the U.S. Department of Homeland Security (DHS) has awarded Unisys Corp. a "bridge" contract to continue building, securing and managing the information technology infrastructure for TSA, and for DHS headquarters facility. The contract is an indefinite delivery-indefinite quantity contract with a term of one base year with two one-year options which are exercisable at the discretion of the government. The government's estimated value of the base year is $308 million ($265 million for TSA and $43 million for DHS). The total ceiling value of the three-year period is no more than $750 million.
Affiliated Computer Services has signed a 20-month, $11.6 million contract amendment with the Louisiana Department of Health and Hospitals (DHH), Bureau of Health Services Financing to expand its Personal Care Services (PCS) operation. This is an amendment to ACS' existing contract with DHH that became effective July 2004.
ARAMARK International has expanded its relationship with Airbus Deutschland to provide dining services to approximately 21,000 employees at seven Airbus locations across Germany. Under a five year agreement with sales estimated to total up to $14 million per year, ARAMARK will operate restaurants, kiosks and retail shops, as well as the aircraft manufacturer’s vending and catering operations.
Affiliated Computer Services has been awarded an information technology (IT) outsourcing contract with DriveTime Sales and Finance Corporation, a DriveTime company, who with DT Acceptance Corporation, is the nation's largest used automotive sales and financing company for people with credit issues. The five-year contract is valued at $4.8 million.
APAC Customer Services, Inc., a leading provider of customer interaction solutions, announced that The Minneapolis Star Tribune has selected APAC as its customer care outsourcing partner. The Minneapolis Star Tribune, owned by The McClatchy Company, is one of the top 20 largest newspapers in the nation, serving the Twin Cities for more than 135 years.
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