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February 15, 2007

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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 February 15, 2007 07:52 PM