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January 31, 2007
Top Stories
EBIX TO MAKE NEW OFFER FOR DOCUCORP...Ebix, Inc. announced Thursday that it intends to submit a new offer to acquire all of the outstanding common stock of Docucorp International Inc. to the Docucorp Board in the next few days. On January 25, Ebix had made a proposal to acquire all of the outstanding common stock of Docucorp for $11 per Docucorp share in cash and Ebix stock or a total equity value of approximately $140 million.
CLIENTLOGIC COMPLETES SITEL MERGER...ClientLogic has completed its acquisition of SITEL Corporation by merger. Under the terms of the definitive agreement announced in October 2006, ClientLogic paid $4.25 per share in cash for all of the outstanding common stock of SITEL, whose shareholders approved the acquisition on January 12, 2007. The combined company is headquartered in Nashville and has over 65,000 associates across 28 countries and combined revenue of $1.8 billion.
PFSWEB EXPANDS IN CANADA...PFSweb, Inc. has completed the move of its Canadian headquarters to an expanded facility in order to support existing and new client growth. PFSweb provides web commerce technology, inventory management, fulfillment & logistics, freight management, returns processing and customer care services from its Canadian headquarters.
TALX REPORTS INCREASED THIRD QUARTER EARNINGS...TALX Corporation, a leading provider of human resource and payroll-related services, reported that fiscal third-quarter diluted earnings per share from continuing operations increased 23 percent to $0.27, which includes share-based compensation expense of $0.02, from the year-ago $0.22 per diluted share.
EDS NAMES BUSINESS DEVELOPMENT VP...EDS has named Christopher Derganc vice president of Global Corporate Business Development. Derganc, who joins EDS from Unisys Corporation, will report to Paul Currie, executive vice president of Corporate Strategy and Business Development and be responsible for identifying, recommending and driving merger, acquisition and divestiture opportunities across EDS' global operations.
Posted by jbowles at 08:06 PM
New Business
Accenture has signed a seven-year agreement with Kimberly-Clark Corporation to provide a broad range of human resources services. Outsourcing of certain services to Accenture is part of Kimberly-Clark’s global competitive improvement initiatives, which were announced in July 2005. Other terms of the contract were not disclosed. Accenture will provide Kimberly-Clark with administrative services in the areas of recruitment, payroll administration, workforce reporting, employee data management, and training and development.
Sky Express, Russia’s first low-fare airline, has signed an outsourcing agreement for Navitaire’s hosted reservation and revenue management services. The services include Navitaire’s New Skies reservation system and SkyPrice revenue management system. Terms of the contract were not disclosed. Navitaire, a wholly owned Accenture subsidiary, provides technology and business solutions to the airline industry on an outsourced basis.
Affiliated Computer Services been awarded a contract by Mexico City metro operator Sistema de Transporte Colectivo (STC) to deliver a contactless ticketing automated fare collection system. The contract is valued at $9.3 million.
Affiliated Computer Services, Inc. has signed a five-year, $8.7 million contract with the Pennsylvania Department of Public Welfare (DPW) to provide a three-component Medical Management Review System (MMRS) to manage its care management, prior authorization, and case management functions.
Posted by jbowles at 08:06 PM
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Posted by jbowles at 08:05 PM
January 25, 2007
Top Stories
CSC SIGNS $378 MILLION BLUESCOPE STEEL DEAL...Computer Sciences Corporation has signed an information technology (IT) services contract with BlueScope Steel Ltd., a leading international flat steel solutions company. The contract, which includes a four-year base period and two two-year options, has a potential value of $378 million (AUD$480 million) if all options are exercised. CSC will be responsible for managing and delivering a diverse set of IT services ranging from consulting, applications development and support, disaster recovery, systems integration and end-user services on a variety of technology platforms.
IBM EARNINGS UP...IBM announced fourth-quarter 2006 diluted earnings of $2.26 per share from continuing operations, an increase of 12 percent as reported, compared with diluted earnings of $2.01 per share in the fourth quarter of 2005; the fourth-quarter 2005 diluted earnings include $0.10 per share for a one- time pretax curtailment charge of $267 million related to pension changes. Diluted earnings per share for the fourth-quarter 2006 grew 7 percent compared with the year-ago quarter of $2.11 per diluted share, without the one-time per share charge. Fourth-quarter 2006 diluted earnings per share include a $0.06 benefit as a result of a lower tax rate.
UNISYS EARNINGS UP FOR QUARTER...Unisys Corporation reported fourth-quarter 2006 pre-tax income of $49.3 million. Operating profit margins and earnings improved significantly in the quarter and service orders showed double-digit growth for the second consecutive quarter driven by strong demand for outsourcing. Fourth-quarter 2006 pre-tax income of $49.3 million increased 81 percent from pre-tax income of $27.2 million for the fourth quarter of 2005. The company reported fourth-quarter 2006 net income of $21.3 million, or 6 cents per share. The results included pre-tax pension expense of $43.7 million. These results compared with a fourth-quarter 2005 net loss of $31.1 million, or 9 cents per share, which included pre-tax pension expense of $44.3 million.
ACCENTURE OPENS SECOND CZECH CENTER...Accenture has opened its second Czech delivery center in Brno, which will provide application outsourcing for European clients. The Brno center will complement Accenture’s existing global delivery network of 44 delivery centers. In Central and Eastern Europe, Accenture already operates delivery centers in Bratislava, Bucharest, Prague, Riga and Warsaw. Accenture opened its Prague delivery center in 2001 and has been operating in the Czech Republic since 1991.
ACS NAMES FORMER WORLD BANK OFFICIAL TO BOARD...Robert Holland, former U.S. Executive Director of the World Bank, has joined the Board of Directors of Affiliated Computer Services, Inc.
Posted by jbowles at 07:59 PM
New Business
Unisys Corp. signed a four-year contract with the Australian Department of Immigration and Multicultural Affairs (DIMA) to provide a range of outsourced desktop services. The contract is worth an estimated $110.5 million USD ($140 million AUD) over the initial four years, with the potential for future contract extensions. This contract follows DIMA’s recent award of a separate contract, under which Unisys provides biometrics solutions for DIMA’s border control initiative.
EDS announced a new, five-year, $97 million contract with the European Space Agency (ESA) that calls for EDS to manage the ESA's Corporate Information Technology (IT) Services and related infrastructure.
EDS has been awarded a $91.7 million contract extension to continue providing fiscal agent services to the state of Kansas. The contract was awarded to EDS at the end of the fourth quarter of 2006. The Kansas Health Policy Authority exercised its first three-year option on the contract, extending the agreement with EDS until June 30, 2011.
The U.S. Department of Justice, Asset Forfeiture Management Staff (DOJ AFMS), awarded Unisys Corporation a blanket purchase agreement (BPA), under which delivery orders may be issued for continued support of the Consolidated Asset Tracking System (CATS). The eight-year BPA could be worth approximately $112 million to Unisys, if the government orders services at the levels anticipated for the full eight-year term. The government already has issued orders for about $8 million.
Affiliated Computer Services, Inc. has been awarded a three-year renewal of its benefit plan administration outsourcing contract with American Financial Group, Inc. (AFG), a leading provider of property and casualty insurance, annuities, and supplemental health insurance.
Posted by jbowles at 07:58 PM
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Outsourcing Alert reaches 50,000 key decision-makers a week. For advertising information and rates, contact Peter Bowes. Tel: (508)359-9356 or send an email.
Posted by jbowles at 07:57 PM
January 18, 2007
Top Stories
ACCENTURE SIGNS $100 MILLION DEAL WITH AIG...Accenture has signed a 10-year, US$100 million business processing outsourcing (BPO) agreement with AIG Europe S.A. to provide an IT platform and insurance support services to AIG Entrepreneur, an AIG unit specializing in Property and Casualty insurance for small and medium enterprises. The agreement which aims to maximize operational efficiencies and enhance services will be implemented in several European countries starting initially with France. Services will be provided to AIG Europe by Accenture Insurance Services – an Accenture business that offers insurance BPO services to life, annuity, pensions and P&C insurers globally – through Accenture’s service center in Bucharest, Romania.
NEW NAME FOR SIEMENS BUSINESS SERVICES...In conjunction with Siemens’ launch of the new Group Siemens IT Solutions and Services, Siemens Business Services, Inc. has been renamed Siemens IT Solutions and Services, Inc. The group will continue to provide a broad scope of IT services including innovative IT solutions, infrastructure outsourcing and the management and development of application software.
HP SERVICES NAMES NEW SVPS...HP has named Onagh Ash senior vice president of HP Services’ Consulting and Integration unit, and Bob Pryor has been named senior vice president of Global Business Development. Both will report to John McCain, senior vice president and general manager of HP Services.
ACS EXPANDS IN JAMAICA...Affiliated Computer Services, Inc. is expanding its global capabilities with the construction of a new, 65,000 square-foot office and call center facility in Montego Bay, Jamaica. ACS is also hiring 600 additional employees to staff the new location. Currently, ACS employs 1,300 people and is one of the largest information communication and technology services providers in Jamaica.
Posted by jbowles at 06:40 PM
New Business
Rockwell Collins, a global leader in aviation electronics, has awarded HP a seven-year, $175 million global services contract to provide industry-standard solutions for IT infrastructure management, including help desk, desk-side support and server management.
Unisys Corporation has signed a worldwide IT outsourcing contract with Germany-based BSN Medical GmbH, an international provider of medical products for wound care, orthopedics and phlebology. Under the contract, Unisys will provide BSN Medical with a comprehensive suite of IT services. The five-year contract has an estimated value to Unisys of $35 million. Unisys will provide outsourcing services for BSN Medical at 35 locations worldwide, supporting 3,500 BSN Medical staff.
Cognizant has signed an IT applications outsourcing agreement with Kimberly-Clark Corporation covering an array of SAP and customized software applications, including strategic planning, product management, supply chain planning and execution, sourcing, sales and marketing, data exchange and compliance, enterprise management and customer management. The agreement has an initial term of five years with additional one-year extension options. Other terms of the agreement were not disclosed.
Linklaters, one of the world's leading law firms, has signed a multi-year contract with Perot Systems for use of its Lab- on-Hire service to have flexible, cost effective application development services. Perot will provide scalable resources for a variety of application development projects from its offshore delivery centres.
Posted by jbowles at 06:40 PM
Advertising Information
Outsourcing Alert reaches 50,000 key decision-makers a week. For advertising information and rates, contact Peter Bowes. Tel: (508)359-9356 or send an email.
Posted by jbowles at 06:38 PM
January 11, 2007
Top Stories
EVEREST PREDICTS 30% FINANCE AND ACCOUNTING OUTSOURCING GROWTH IN 2007...The global Finance and Accounting Outsourcing (FAO) market is predicted to grow in excess of 30 percent in 2007 as the global infrastructure matures to enable F&A solutions that take advantage of low-cost offshore talent and robust supplier process offerings underpinned by F&A technology, according to a new report released from Everest Research Institute. The global FAO market has grown by more than 45 percent since the beginning of 2005 and reached $2 billion in expenditures in the United States last year, according to the Institute’s Finance & Accounting Outsourcing (FAO) Annual Report 2006.
HEWITT NAMES HEAD OF CORPORATE DEVELOPMENT AND STRATEGY...Hewitt Associates, Inc. has appointed Matthew C. Levin to the new management position of senior vice president, corporate development and strategy, effective immediately. Levin, 33, who joins Hewitt from IHS Inc., where he served as senior vice president of corporate development and strategic planning, will be responsible for Hewitt’s corporate development program, with a particular emphasis on mergers, acquisitions and partnership opportunities, as well as strategic and growth initiatives for both its consulting and outsourcing business segments. He will report directly to Chairman and CEO Russ Fradin.
KENEXA TO MAKE PUBLIC OFFERING...Kenexa Corporation intends to file a prospectus supplement with the U.S. Securities and Exchange Commission relating to an underwritten public offering of 3,750,000 shares of its common stock under an effective shelf registration statement. The underwriters will have an option to purchase up to an additional 562,500 shares from the company to cover over-allotments, if any.
Posted by jbowles at 08:10 PM
New Business
Genpact, a global provider of business and technology services, has signed a five-year contract to provide certain finance and accounting activities for Kimberly-Clark Corporation. Outsourcing of these services to Genpact is part of Kimberly-Clark’s global competitive improvement initiatives, which were announced in July 2005. Terms of the contract were not disclosed.
Rockwell Collins has awarded HP a seven-year, $175 million global services contract to provide industry-standard solutions for IT infrastructure management, including help desk, desk-side support and server management.
Ness Technologies, has been awarded a multi-year offshore development contract by InfoVista, a leading provider of service-centric performance management software. Under the terms of the contract, Ness Technologies will establish an R&D center for InfoVista at Ness Technologies' offshore facility in Bangalore, India.
John Hancock Financial Services, a division of Manulife Financial, has extended its applications outsourcing contract with CSC for two more years, through May 2011. The newly negotiated contract provisions have an estimated total contract value exceeding $50 million and cover services to be delivered during the next four years.
Affiliated Computer Services, Inc. has been awarded an expansion to its multi-million dollar contract with Symetra Financial, a leading life insurance and financial services company. The expanded agreement will add desk-side support services to ACS' existing five-year contract, which commenced in 2004.
ACS has also been awarded a new five-year, $87.3 million contract by the Florida Healthy Kids Corporation (FHKC) to administer the State's Child Health Insurance Program (CHIP). The contract may be extended for up to five additional years at FHKC's option.
Volvo Car Corporation has extended its existing outsourcing contract with WM-data, a LogicaCMG company. The duration and financial terms of the deals were not disclosed. Volvo Car has been outsourcing its operations and support services to WM-data since 2002. WM-data is responsible for developing, implementing and supporting Volvo Cars’ global client and server platform for about 17,000 clients in Sweden and national sales companies across the rest of Europe.
Posted by jbowles at 08:08 PM
Advertising Information
Outsourcing Alert reaches 50,000 key decision-makers a week. For advertising information and rates, contact Peter Bowes. Tel: (508)359-9356 or send an email.
Posted by jbowles at 08:05 PM
January 04, 2007
Top Stories
ACCENTURE REPORTS STRONG FIRST QUARTER...Accenture reported strong financial results for the first quarter of fiscal 2007, ended Nov. 30, with net revenues of $4.75 billion, an increase of 14 percent in U.S. dollars over the same period last year and above the high end of the company’s previously stated expectations. GAAP diluted earnings per share were $0.46, an increase of 28 percent over the first quarter of fiscal 2006. The company achieved the highest quarterly net revenues in its history, driven by record net revenues across all three geographic regions and all five operating groups.
OASIS ACQUIRES KELLY STAFF LEASING...Oasis Outsourcing Holdings, Inc., the nation's largest privately-held Professional Employer Organization (PEO), has acquired Kelly Staff Leasing from Kelly Services, Inc., a leading provider of human resources, payroll processing, benefits and risk management solutions to small and medium-sized businesses throughout the United States. The acquisition includes its primary facility in San Diego, CA which houses its Operations Center, including payroll processing, customer service and human resources support personnel.
PEROT SYSTEMS ACQUIRES GOVERNMENT IT SERVICES FIRM...Perot Systems Corporation has signed a definitive agreement to acquire QSS Group, Inc., a U.S. federal government information technology services company based in Lanham, MD.
WATSON WYATT ACQUIRES DUTCH PARTNER...Watson Wyatt Worldwide announced the intention to acquire its alliance partner in the Netherlands, Watson Wyatt Brans & Co. A definitive agreement is expected to be signed in the first quarter of 2007. The two firms have maintained a close relationship for many years.
R.R. DONNELLEY ACQUIRES TRADE PRINTER...R.R. Donnelley & Sons Company will acquire Von Hoffmann, a leading printer of books and other products that serves primarily the education, trade and business-to-business catalog segments, from Visant Corporation for purchase consideration of $412.5 million. The all cash deal, which is subject to customary closing conditions, including regulatory approval, is expected to close by the end of the first quarter of 2007, and to be accretive to RR Donnelley's earnings in the first year of operations.
OPI NAMES EUROPEAN ADVISORY BOARD...Outsource Partners International, Inc. (OPI), a leading professional services firm dedicated solely to finance and accounting outsourcing, announced the formation of a European Advisory Board. The Advisory Board, which brings together several of Europe’s most experienced and respected business leaders, will work hand-in-hand with OPI leadership to guide OPI’s growth and development throughout the UK and Europe.
Posted by jbowles at 08:49 PM
New Business
The UK Ministry of Defence has approved an amendment to the Defence Information Infrastructure (Future) contract, confirming ATLAS will deliver DII Increment 2a, a further element of the 10-year contract awarded in March 2005, to modernize and create a single coherent MOD information infrastructure. The ATLAS Consortium comprises EDS as lead contractor, tier 1 partner Fujitsu Services and key sub-contractors General Dynamics, EADS Defence and Security Systems and LogicaCMG. The contract amendment enables EDS to increase its previously stated estimates for revenue from the MOD DII (F) contract over the next eight years by $1.27 billion.
Ness Technologies, a global provider of IT services and solutions, has been awarded a multi-year offshore development contract by InfoVista, a leading provider of service-centric performance management software. Under the terms of the contract, Ness Technologies will establish an R&D center for InfoVista at Ness Technologies’ offshore facility in Bangalore, India.
Riverbed Technology, a provider of wide-area data services (WDS) solutions, has selected PFSweb, Inc., a global provider of integrated business process outsourcing (BPO) solutions, to provide product configuration and final assembly services for its WDS product lines, as well as inventory management, order fulfillment and international logistics services. The terms of this contract, signed in November of 2006, were not disclosed.
Posted by jbowles at 08:49 PM
Advertising Information
Outsourcing Alert reaches 50,000 key decision-makers a week. For advertising information and rates, contact Peter Bowes. Tel: (508)359-9356 or send an email.
Posted by jbowles at 08:47 PM
