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February 22, 2007
Top Stories
HP, BT WIN $450 MILLION CONTRACT FROM ANGLO AMERICAN...HP and BT have signed seven-year contracts with Anglo American plc for approximately $450 million to outsource the management of the company’s global voice services, data center operations and end-user workplace environment to the BT HP Alliance. A core part of these agreements is a two-year global transformation program to support Anglo American’s strategy for growth and ongoing efficiency initiatives that will create a global integrated and consolidated IT infrastructure aligned with Anglo American’s information management strategy and architecture.
VERITAS ACQUIRES PEARSON GOVERNMENT SOLUTIONS...Veritas Capital Partners has completed the acquisition of Arlington, VA-based Pearson Government Solutions (PGS) from Pearson plc, the international media and education company. Under terms of the transaction, Veritas Capital paid $600 million of consideration and Pearson plc is retaining a minority interest in PGS, which has been renamed Vangent. Vangent’s more than 5,500 employees serve national and local governments, education institutions and corporations in the U.S. and around the world.
NEW COO AT CAMBRIDGE...Cambridge Integrated Services, a subsidiary of Cambridge Solutions Ltd., announced that Peter J. Imbrogno has been appointed chief operating officer for the U.S. Imbrogno’s duties will include overseeing U.S. field claims services, managed care and bill review, vendor management, business optimization and performance analysis, and the special investigative unit.
COVANSYS FOUNDER HONORED...Covansys Corporation announced that the company’s founder, president and chief executive officer, Raj Vattikuti, received the Woodrow Wilson Award for Corporate Citizenship from The Woodrow Wilson International Center for Scholars of the Smithsonian Institution.
Posted by jbowles at 03:51 PM
New Business
Computer Sciences Corporation has signed an information technology (IT) services contract with Water Corporation, one of Australia's largest water service providers with more than AUD$10 billion invested in water services infrastructure. The contract, which includes a six-year base period and four one-year options, is valued at $149 million (AUD$190 million) if all options are exercised.
Convergys Corporation will continue to provide outsourced learning services to Circuit City Stores, Inc., one of the nation’s leading specialty retailers of consumer electronics, under the terms of a two-year contract extension. Circuit City has used Convergys’ comprehensive outsourced learning services since 1999. Convergys will continue to provide consulting services for learning content development and sourcing, operations and administration, hosting, and delivery services.
EDS, the largest provider of Medicare fee-for-service data center operations, has been awarded the third task order under the Centers for Medicare & Medicaid Services (CMS) Enterprise Data Center Indefinite Delivery/Indefinite Quantity contract vehicle. The task order contains a one-year base period with five additional one-year options with a potential value of $92 million if all of the options are exercised.
Continental Airlines Cargo is now live on the Unisys-operated Cargo Portal Services (CPS), a leading electronic booking and shipment management service for the air cargo industry. Continental’s participation in CPS will give the airline’s air cargo clients a convenient, Web-based facility to manage bookings and track shipments through a neutral portal.
Affiliated Computer Services, Inc. has been awarded a contract by Alstom, a global leader in rail infrastructure, to deliver the ticketing system for Jerusalem's first tramway system. Financial details were not disclosed.
Posted by jbowles at 03:50 PM
Everest and Bernstein analysts to address ITO trends and directions, impacts of asset-light model in February 27 Webinar
Although the Infrastructure Outsourcing (IO) market is significantly affected by the asset-light model, the asset-heavy model won’t be completely replaced anytime soon according to the Everest Research Institute and Bernstein Research, whose leading Information Technology Outsourcing (ITO) analysts will discuss ITO market trends and directions in a one-hour Webinar on February 27 at 8:30 a.m. CST.
Ross Tisnovsky, Vice President of ITO Research at Everest Research Institute, and Senior Analyst Rod Bourgeois of Bernstein Research will combine and contrast their insights on the ITO market following their examination of perspectives of key outsourcing stakeholders and external market factors, such as changes in asset accounting and growth in remote infrastructure management tools. Topics they will discuss include:
o Analysis of the changes in the asset ownership trend in Infrastructure Outsourcing and effect on the market
o Insights into deals and market conclusions, including supplier trends
o How Utility Computing and On-Demand strategies may significantly impact IT assets role in the IO market
The Webinar will comprise a 45-minute presentation followed by 15 minutes of questions and answers for participants. The one-hour session is the first in a series of quarterly Webinars to be held by the Institute and Bernstein this year.
The Webinar will take place on February 27, 2007 at 8:30 a.m. CST (USA); 2:30 p.m. (UK); 8 p.m. (India).
To register, please visit: www.everestresearchinstitute.com/events.
About Everest Research Institute
Everest Research Institute serves as a central source of independent and objective strategic intelligence, analysis, and actionable insight for leading corporations, service providers, and investors in the global outsourcing and offshoring marketplace. The Institute addresses both business process and information technology sourcing topics, providing the global outsourcing and offshoring community with information that empowers highly productive, sustainable sourcing strategies and relationships.
Everest Research Institute is the research arm of the Everest Group, a global consulting firm that assists corporations in developing and implementing leading-edge sourcing strategies. Since 1991, Everest Group has served as the trusted business advisor for hundreds of IT and business process outsourcing transactions worldwide.
About Bernstein Research
Sanford C. Bernstein & Co. has been providing top-quality investment research to institutional investors such as pension managers, mutual funds, banks and insurance companies for more than 25 years. The Bernstein research brand is defined by our renowned "blackbook" reports. These are known for their unbiased in-depth company and industry forecasts. In addition, Bernstein reports have established a reputation for disciplined research into valuation and the factors affecting stock-price movements.
Posted by jbowles at 03:50 PM
Alliances
Cognos and IBM have extended their global strategic alliance to deliver a workforce performance management solution through IBM’s Human Resources Business Transformation Outsourcing (BTO) service. Under terms of the agreement, IBM has selected Cognos 8 Workforce Performance as a standard analytic and reporting solution to be delivered within its full-service Human Capital Management (HCM) outsourcing solutions portfolio.
Posted by jbowles at 03:49 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 03:49 PM
February 15, 2007
Top Stories
RIMO MARKET SET TO EXCEED $8 BILLON IN FIVE YEARS, EVEREST RESEARCH SAYS...The Remote Infrastructure Management Outsourcing (RIMO) market is likely to exceed US $8 billion over the next five years, according to a new report released today by the Everest Research Institute. The RIMO market, an emerging Infrastructure Outsourcing (IO) model, is growing at approximately 60 percent annually. According to the Infrastructure Outsourcing Roadmap report, 75 percent of this growth is attributed to renewals of pilot contracts with significant scope increases with the remaining 25 percent is attributed to new deals. The report is the first of a series of four studies to be released this quarter by the Institute’s newly formed ITO Research Group, established to analyze the ever-changing ITO marketplace in greater depth and provide actionable insights into its future evolution.
GLAXOSMITHKLINE AWARDS ACS $171 MILLION BPO CONTRACT...Affiliated Computer Services, Inc. has been awarded a $171 million contract with GlaxoSmithKline (GSK) to provide human resource business process outsourcing (HR BPO) services. Under terms of the ten-year agreement, ACS will consolidate for GSK a number of services that are currently outsourced to a variety of providers or being delivered within GSK. These include payroll processing and benefits administration for GSK in the US, as well as employee and manager self-service portals and integrated online tools for several HR processes across US and UK businesses.
ACS ANNOUNCES SECOND QUARTER RESULTS...Affiliated Computer Services, Inc. announced second quarter fiscal year 2007 revenues of $1.4 billion, an increase of 6% compared to the second quarter of the prior year. The company's internal revenue growth rate for the quarter was 4%. Second quarter fiscal year 2007 diluted earnings per share was $0.72, and included legal expenses related to the ongoing stock option investigations and shareholder derivative lawsuits and a gain on hedging activities.
CAPGEMINI BEATS EXPECTATIONS...Capgemini, Europe's largest computer consultancy, posted a 2006 operating profit of 447 million euros ($583.5 million), beating expectations, and said it would lift its dividend by 40 percent to 0.7 euros per share.
INFOSYS LOOKING FOR EUROPEAN DEALS...Infosys Technologies Ltd is scouting for acquisitions of mid-sized business process outsourcing (BPO) companies in Europe, the Economic Times reported. It said the company is looking at deals valued at around $100 million.
CEREDIAN REVENUES UP...Ceridian Corporation reported fourth quarter 2006 net earnings of $49.6 million, or $.35 per diluted share, on revenue of $404.0 million. For the fourth quarter of 2005, net earnings were $46.7 million, or $.32 per diluted share on revenue of $379.5 million. For the year ended December 31, 2006, net earnings were $173.6 million, or $1.20 per diluted share, on revenue of $1,565.1. 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.
EXIGEN SERVICES MERGES WITH STARSOFT...Exigen Services, one of the largest application outsourcing firms in Central and Eastern Europe, and StarSoft Development Labs, a leading provider of software development outsourcing services in Russia and Ukraine, today announced their merger.
MANPOWER NAMES AVON EXECUTIVE TO BOARD...Manpower Inc. announced the appointment of Gina Boswell, senior vice president and chief operating officer for Avon North America, to its board of directors. Boswell, 44, is responsible for implementing Avon North America's transformation agenda and its business strategies.
Posted by jbowles at 07:52 PM
New Business
Hawaiian Telcom Communications, Inc. has contracted with Accenture to complete the development and deployment of Hawaiian Telcom’s key customer service and business support systems. Accenture was first engaged by Hawaiian Telcom in August 2006 to assist with systems remediation. That successful engagement led to negotiations for Accenture to assume responsibility for the completion of Hawaiian Telcom’s systems build-out, continued remediation of existing systems and ongoing systems development and maintenance. The contract begins with a transition period, ending May 2, 2007, in which Accenture will assume responsibility in stages for currently ongoing systems activities. The contract is valued at approximately $46 million and will run for 17 months.
Unisys Corporation has expanded its relationship with Reliance Standard Life Insurance Company (RSL) by designing and implementing a managed services solution to help the insurer transform its payments operations while improving customer service, controlling costs, and better managing legacy investments in a dynamically changing industry landscape.
United Bank, a $4 billion institution in Charleston, W.Va., chose Fiserv for outsourced check processing to complement its longstanding data processing relationship. When the conversion is complete at the end of February, Fiserv will process approximately two million POD (proof of deposit) items each month for United Bank out of Fiserv centers in Charleston, W. Va.; Columbia, Md.; Pittsburgh, Pa. and Cincinnati, Ohio.
Posted by jbowles at 07:52 PM
Alliances
HCL Technologies Ltd. announced a strategic alliance with prominent actuarial experts Eckler Ltd., with an objective of deepening the company’s Insurance Domain expertise. Under the alliance, HCL and Eckler will work together on various actuarial consulting and implementation projects across the globe. The partnership has been signed to leverage the capabilities of both organisations in actuarial services, IT consulting and implementation
Posted by jbowles at 07:51 PM
Advertising Information
Outsourcing Alert reaches 50,000 key decision-makers a week. For advertising information and rates, contact Peter Bowes. Tel: (508)359-9356 or send an email.
Posted by jbowles at 07:50 PM
February 08, 2007
Top Stories
EDS SIGNS $463 MILLION CONTRACT WITH ITALIAN INSURANCE GIANT...Fondiaria-Sai Insurance Group, Italy's second largest and one of the country's oldest insurance companies, announced a new, 10-year, $463 million agreement, signed in December 2006, for information technology (IT) infrastructure management services.
Fondiaria-Sai Insurance Group (the Group), which consists of more than 100 companies and subsidiaries offering insurance, financial services and asset management as well as real estate, agricultural and other services, selected EDS to improve the its productivity and help enable the flexibility needed to grow and meet market requirements.
BT ACQUIRES INDIAN CARRIER...BT has signed an agreement for the acquisition of i2i Enterprise Pvt Ltd, a Mumbai-based enterprise services company specializing in internet protocol (IP) communications services for major Indian and global multinational companies. The acquiring entity is BT Telecom India Pvt Ltd, BT's joint venture company with Jubilant Enpro Pvt Ltd. i2i is the distributor of BT Infonet's managed network services and products nationwide.
UNISYS EXPLANDS GLOBAL ALLIANCE WITH ORACLE...Unisys Corporation is advancing its offerings to help clients modernize their enterprise IT assets through a far-reaching expansion of its global alliance and joint programs with Oracle. This is the first joint initiative between the two companies focused specifically on standards-based modernization solutions. The alliance and related programs focus on addressing clients’ most pressing enterprise business requirements with combinations of business process, application and infrastructure modernization services and products that leverage key industry standards.
CAPGEMINI NAMES CEO OF NORTH AMERICAN P&C BUSINESS...Capgemini US LLC announced that Lanny Cohen was appointed chief executive officer of Capgemini’s project and consulting (P&C) business in North America. Salil Parekh, the prior CEO, has been asked to address another global priority by taking on the role of Executive Chairman of Capgemini India, to help drive growth in India and ensure a smooth integration with Kanbay International once the acquisition has been finalized.
PEROT QUARTERLY REVENUES UP...Perot Systems Corporation announced financial results for the fourth quarter of 2006. For the quarter: Revenue was $601.0 million, an increase of $74.3 million, or 14%, year-to-year over fourth quarter 2005 revenue of $526.7 million, and includes $12.2 million of revenue growth, equal to two percentage points, from the first quarter 2006 acquisition of eServ, LLC. Earnings per share (diluted) for the fourth quarter of 2006 was $.26.
Posted by jbowles at 03:18 PM
New Business
Standard Chartered Bank, a leading international bank with an extensive network in over 50 countries, has selected Euronet to provide global ATM network services along with ATM and card management services to the Bank in Asia, Africa and the Middle East on a country-by-country basis.
Computer Sciences Corporation has won a contract to provide systems engineering and integration support to the Department of Defense's Missile Defense Agency (MDA). CSC estimates the value of the contract, which has a one-year base period and four one-year options, to be $151 million if all options are exercised. This contract follows an agreement CSC signed with the MDA in 2002.
Affiliated Computer Services has been awarded an information technology (IT) outsourcing contract with Safety-Kleen, a leading provider of responsible oil recycling, cleaning technologies, and
environmental services. The three-year contract is valued at $3.3 million.
Posted by jbowles at 03:18 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 03:16 PM
