« April 2007 | Main | June 2007 »
May 30, 2007
Top Stories
CONVERGYS WINS $1 BILLION DEAL WITH J&J...Convergys Corporation has signed a 10-year agreement with Johnson & Johnson Services, Inc. to provide a variety of human resources (HR) services. Convergys expects this contract to generate revenues of approximately $1 billion over its 10-year duration. This agreement is expected to have a significant impact on Convergys’ revenue and earnings beginning in early 2009.
HP WINS NASA CONTRACT WORTH UP TO $5.6 BILLION...HP has been awarded a seven-year contract worth up to $5.6 billion by the U.S. National Aeronautics and Space Administration (NASA) to provide a wide range of technology as needed by U.S. federal government agencies. HP products to be provided under the indefinite delivery indefinite quantity (IDIQ) contract, called the NASA Solutions for Enterprise-Wide Procurement (SEWP) IV Class 5, include desktops, workstations and blade PCs with Linux and Unix capabilities, servers and printers, among other offerings.
BISYS SETTLES WITH SEC...BISYS has completed its previously disclosed settlement with the Securities and Exchange Commission (SEC) with respect to the SEC’s investigation into its 2004 and 2005 restatements. The company has agreed, without admitting or denying any wrongdoing, to refrain from future violations of the reporting, books and records and internal control provisions of the federal securities laws and related SEC rules and, as previously disclosed, will pay $25.1 million in disgorgement and prejudgment interest. The settlement concludes the SEC’s investigation of this matter with respect to the company.
FISERVE TO SELL INVESTMENT SUPPORT SERVICES...Fiserv, Inc. has signed definitive agreements to sell its Fiserv Investment Support Services (Fiserv ISS) operations in two separate transactions. The transactions, which are subject to customary conditions and regulatory approvals, are expected to close by the end of the year, or earlier, depending on regulatory approvals. Fiserv ISS manages nearly 300,000 retirement and custodial accounts valued at $46 billion.
Posted by jbowles at 08:08 PM
New Business
Mexican financial application services provider ASP Pisa has selected IBM to provide management and integration services for its ERP, database and core banking processes. The $935,000 agreement signed last month calls for IBM to manage all hardware, software and integration for ASP Pisa.
EDS has been selected by the U.S. Defense Finance and Accounting Service (DFAS) to provide information technology support for software development and maintenance of financial and accounting systems under the DFAS Financial Integrated Systems Services-III (DFISS-III) contract. EDS is one of four companies that will compete for task orders under the five-year blanket purchase agreement with a $500 million ceiling.
First National Bank of Arizona has awarded Accenture the mortgage industry’s first-ever end-to-end post-closing business process outsourcing (BPO) assignment. The Accenture service combines personnel, process and technology to fully automate this part of mortgage fulfillment. Financial terms of the two-year contract were not disclosed.
Posted by jbowles at 08:08 PM
European News
Unisys Corporation's UK subsidiary has been awarded a contract to supply extensive IT services to the global law firm Linklaters. Under the terms of the contract, Unisys will take responsibility for the support and maintenance of Linklaters’ global data centre and office server, printer and storage infrastructure as well as for the UK desktop computing estate of PCs, laptops and personal productivity devices. Unisys will work across 23 of the countries in which Linklaters operates and will provide a full service offering to the Linklaters staff at their head office in London. Implementation began in March 2007.
Posted by jbowles at 08:07 PM
Everest and Bernstein Analysts to Address ADM Issues at June 5 Webinar at 8:30 am CDT
The Application, Development and Maintenance (ADM) outsourcing market is moving into an incrementally more mature phase. Its growth dynamics are undergoing a significant change as large buyers re-evaluate their strategies – often deciding to consolidate their existing relationships into a smaller portfolio. This new growth paradigm creates significant opportunities for Tier 1 suppliers (both traditional and offshore) to build on their existing relationships and position themselves as true partners according to the Everest Research Institute and Bernstein Research, whose Information Technology Outsourcing (ITO) analysts will discuss ITO market trends and directions in a one-hour Webinar on June 5th at 8:30 a.m. CDT.
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. Topics they will discuss include:
• The latest trends in the global ITO market as observed by two industry analysts
• How changes in the ADM market will likely reshape the way ADM outsourcing looks today
• How changes will impact ADM buyers and suppliers and what new opportunities may lie ahead for each segment
To register, please visit this page.
Posted by jbowles at 08:07 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 08:06 PM
May 23, 2007
Top Stories
ACXIOM TO BE ACQUIRED FOR $3 BILLION...Acxiom Corporation has entered into a definitive agreement to be acquired by Silver Lake, a leading investment firm focused on large-scale investments in technology-driven growth industries, and ValueAct Capital, one of the largest investment firms that makes strategic block and control investments in public and private companies. Silver Lake and ValueAct Capital will acquire 100 percent of the outstanding equity interests in the company in an all-cash transaction valued at $3 billion, including the assumption of approximately $756 million of debt.
LAPHEN NAMED CEO OF CSC...Computer Sciences Corporation has elected CSC President and Chief Operating Officer Michael W. Laphen to the position of chief executive officer, effective immediately. Laphen, 56, succeeds Van B. Honeycutt, 62, who will remain as chairman and a CSC employee through his current term, which expires on July 30, 2007. Laphen, who retains the position of president, will become chairman at that time.
PRUDENTIAL RENEWS ANTARES CONTRACT UNTIL 2017...Antares Management Solutions has received a contract renewal to provide full Business Process Outsourcing (BPO) services for Prudential's individual health insurance business through the year 2017. Under terms of the ten-year contract extension, Antares will continue to assume all administration duties,including full claims processing, customer service, premium administration, benefit and policy administration, financial administration and reporting, along with banking services, imaging and compliance management.
CAPGEMINI SPONSORS PLATT'S CONFERENCE...Capgemini, one of the world’s foremost providers of consulting, technology and outsourcing, today announced it will be the exclusive principal sponsor of the Platts 4th Annual Utility M&A Conference, June 25-26, 2007 at the Marriott New York Financial Center. Platts, the world’s largest and most authoritative source of energy industry information and service, is hosting the conference.
Posted by jbowles at 07:48 PM
New Business
EDS and the World Bank Group announced a new, three-year with two option years, indefinite delivery indefinite quantity (IDIQ) information technology (IT) agreement. EDS is one of three companies selected by the World Bank Group to compete for task orders under the $150 million services contract. EDS will provide technology services in support of the World Bank Group’s development mission in the areas of software applications, customer relationship management, and technology infrastructure and information management.
Wana, a primary telecommunications service provider in Morocco, has selected Accenture and Telcordia to provide a fulfillment solution designed to support its innovative next-generation, converged network infrastructure. Accenture and Telcordia will help Wana gain efficiencies in key areas and processes of its business, including operations, engineering, information technology, marketing and sales.
Fiserv, Inc. been selected by Huntington National Bank to offer health savings account (HSA) services to the individual and business customers the bank serves. Fiserv’s healthcare banking solution, which derives its functionality from the products and services of a vast array of healthcare, banking and payment assets, will be made available as a totally outsourced solution for the $35-billion regional bank holding company headquartered in Columbus, Ohio.
Science Applications International Corporation won a recompete contract to continue to provide information technology (IT)outsourcing services to Alyeska Pipeline Service Company. SAIC has provided these services since 2002. The single award, five-year fixed-unit-price contract is valued at $35 million. The contract contains two one-year options for recurring services for an estimated value of $14 million. If all options are exercised, the total value of the contract could reach $49 million.
Posted by jbowles at 07:48 PM
European News
Watson Wyatt Worldwide announced its intention to acquire Heissmann, Germany's premier firm of actuarial, benefits and human resources consultants. Headquartered in Wiesbaden and established in 1955, Heissmann employs a staff of 360, including 300 people in Germany. The firm has total annual revenues of more than 50 million euros.
A.P. Moller-Maersk, one of the world's leading shipping companies, and IBM announced a five-year agreement for IBM to manage A.P. Moller-Maersk's IT infrastructure and services. The deal builds on existing contracts between A.P. Moller-Maersk and IBM, covering operations and support. As a part of the new agreement, IBM will be responsible for providing integrated end-to-end facility management services, including managing a considerable part of A.P. Moller-Maersk's business solutions and IT operations.
IBM been selected by JCDecaux, one of the world's leading outdoor advertising companies, to develop an IT based solution supporting maintenance and regulation of its bicycle fleet in Paris, France, as part of the development for its self-service bicycle system.
Posted by jbowles at 07:48 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 07:47 PM
May 16, 2007
Top Stories
OUTSOURCING EXCELLENCE AWARD WINNERS NAMED...Outsourcing Center has announced the winners of the 2007 Outsourcing Excellence Awards:
Best Partnership - Old Mutual Financial Network
and Perot Systems
Best IT Applications - Illinois State Toll Highway
Authority/Unisys
Best IT Infrastructure - Bank of India/HP
Best BPO - Louisiana Department of Social
Services/ACS
Best EU - Thomas Cook UK/Accenture
Best Offshore - Nortel Networks/Wipro
Best First Steps - Bharti Airtel/Nortel Networks
India
Best Financial Services - Aon South Africa/Alfinanz
Best Healthcare - Brigham and Women's Hospital
Department of Surgery/McKesson Provider
Technologies
An independent panel of industry experts evaluated 86 nominated relationships worldwide.
The September 1 issue of the Outsourcing Journal will feature in-depth articles on each award-winning relationship. Forbes magazine will highlight the winners in its June 4 issue.
"Outsourcing is becoming more complex," said Debra Floyd, COO, Outsourcing Center and director of the awards program. "All companies engaging in outsourcing will benefit by reading about the winners’ lessons learned, keys to success, and collaborative techniques. These relationships achieved notable business outcomes in competitive markets and are exemplary in how they manage their relationships for success."
Winners will be honored at an “Oscars”-like ceremony in New York City, sail on the Forbes Highlander Yacht, and participate in a best practices educational seminar.
GENPACT FILES FOR IPO...Genpact Ltd. has filed for a $600 million IPO. It plans to trade on the NYSE under ticker symbol G, with Morgan Stanley, Citi and JPMorgan serving as co-lead underwriters. General Atlantic and Oak Hill Capital Partners acquired a 62.63% stake in Gepact from General Electric in 2005, for approximately $500 million (including $375 million in equity).
KEANE SHAREHOLDERS APPROVE CARITOR MERGER...Keane, Inc. announced that at a special meeting of shareholders Keane shareholders voted to adopt the merger agreement pursuant to which Caritor, Inc., a global provider of IT services, would acquire Keane. The shareholder vote is a condition to the closing of the acquisition.
WNS CLOSES MARKETICS ACQUISITION...WNS (Holdings) Limited has closed its acquisition of Marketics Technologies (India) Private Limited, a privately-owned leader in offshore analytics services on May 9, 2007. The total consideration for the acquisition consists of a $30 million payment at closing and a contingent earn-out of up to a maximum of $35 million based on the results of operations of Marketics for the fiscal year ending March 31, 2008.
Posted by jbowles at 07:48 PM
New Business
Convergys Corporation will continue to provide human resources and payroll administration services to Fifth Third Bancorp under a five-year contract renewal. Although Fifth Third’s original agreement with Convergys was scheduled to run through 2008, both companies agreed to extend the service agreement two years early as a result of Convergys’ successful execution of the program.
MIVA, Inc. announced an outsourcing and optimization plan to migrate certain service, development and support functions – including IT infrastructure services, application development and maintenance, transactional accounting services and MIVA Media support services to Perot Systems. Additionally, the plan is expected to integrate MIVA Media’s various ad management and auction platforms across the U.S. and Europe onto a single new global application.
Posted by jbowles at 07:46 PM
European News
N.V. Organon, a global pharmaceutical company, and Atos Origin, an international IT services company, signed a contract for the outsourcing of the global infrastructure support services. Atos Origin will introduce and maintain uniform high-standard support services to the business operations of Organon worldwide.
Orange Switzerland has awarded an outsourcing contract to EDS Switzerland, a company specialising in various IT services. As of 1st July 2007 Orange Switzerland will outsource its IT operations department to EDS. At the same time 53 IT operations employees at Orange will be transferred to EDS. These employees will be guaranteed equivalent working conditions that they received at Orange for a period of twelve months.
Posted by jbowles at 07:46 PM
Alliances
Lawson Software announced a new partnership with Ceridian to provide a tax filing interface for Lawson customers using Lawson Payroll. Under the agreement, Lawson will manage the interface between Lawson Payroll and Ceridian’s tax service, which will help simplify the management of complex tax issues associated with an organization’s payroll operations.
Posted by jbowles at 07:45 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 07:42 PM
May 09, 2007
Top Stories
EDS SIGNS BILLION DOLLAR DEAL...EDS announced an agreement with an expected total contract value of approximately US$1 billion with KarstadtQuelle AG, Europe’s leading retail and tourism group, to manage the company’s applications and information technology (IT) environment for the next eight years. The deal is subject to standard regulatory approval.
INDIA BPO STILL LARGELY UNTAPPED...Indian Business Process Outsourcing (BPO) suppliers have achieved critical mass and are now successfully competing with major global suppliers of BPO, reports a new, in-depth study from the Everest Research Institute. According to the study, Business Process Outsourcing – Indian Supplier Landscape, offshoring of business functions such as finance and accounting, customer service, and human resources to Indian suppliers is becoming increasingly mainstream. The study analyzed the entire Indian BPO supplier landscape, and identified 11 suppliers that are establishing themselves as global players through cost efficiency and process and industry expertise. For additional information and an extract of the Business Process Outsourcing (BPO) Indian Supplier Landscape, please visit www.outsourcing-center.com. You may also call 214-451-3110 to schedule a personal briefing appointment.
HP RAISES GUIDANCE FOR SECOND QUARTER...HP has raised its financial guidance for the fiscal second quarter ended April 30. Based on preliminary data, HP expects to announce on May 16 – when its second quarter results are scheduled to be released – that it recorded revenue in the range of $25.50 billion to $25.55 billion, non-GAAP diluted earnings per share (EPS) in the range of $0.69 to $0.70, and GAAP EPS in the range of $0.64 to $0.65. Non-GAAP diluted EPS estimates exclude after-tax costs of approximately $0.05 per share, related primarily to the amortization of purchased intangible assets.
H-CUBE UNIFIES SUBS, ADOPTS NEW NAME...H-Cube has changed its name to Zenta and integrated the operations of its three subsidiaries to create one of the world's leading business and knowledge process outsourcing companies. Under the new Zenta brand, the company will offer its customers a broad array of services based on a high level of integration throughout its operational centers of excellence.
Posted by jbowles at 07:11 PM
New Business
Hana Bank, Korea’s fourth-largest bank and a subsidiary of Hana Financial Group Inc. has chosen Accenture to provide project management office services for the initial phase of its next-generation banking system transformation program. Financial terms were not disclosed.
Hewitt Associates will provide HR business process outsourcing (HR BPO) services to Rogers Communications, Inc., a communications and media company based in Canada. This is an expansion of the companies’ relationship, as Hewitt has provided compensation and benefits consulting services to Rogers for the past few years. Under the new multiyear contract, Hewitt will provide HR BPO services, including workforce administration, payroll, compensation and health and welfare administration services to approximately 26,000 Rogers employees in Canada. Financial terms of the deal were not disclosed.
EDS has been selected by the U.S. General Services Administration to provide end-to-end satellite communications services to all federal government agencies under the Satellite Services-II (SATCOM-II) contract. EDS is one of 24 companies that may compete for task orders under the five-year, $750 million Indefinite Delivery/Indefinite Quantity (IDIQ) contract.
Erie Family Life Insurance Company, a member of Erie Insurance Group, providing life insurance and annuity products in ten states, has signed a multi-year policy administration contract with TAG, a Perot Systems company. Terms of the agreement were not disclosed.
Convergys Corporation will continue to provide human resources and payroll administration services to Fifth Third Bancorp under a five-year contract renewal. Although Fifth Third’s original agreement with Convergys was scheduled to run through 2008, both companies agreed to extend the service agreement two years early as a result of Convergys’ successful execution of the program.
Posted by jbowles at 07:10 PM
European News
Cognizant and Ordina, one of the fastest- growing and largest services providers in consulting, ICT and outsourcing in the Netherlands and Belgium, have entered into a major outsourcing arrangement with Rabobank, the largest banking group in the Netherlands. Cognizant and Ordina will collaborate to deliver outsourced services as part of a seven-year arrangement with Rabobank Group, encompassing application design, development and testing services. As a key partner in this arrangement, Cognizant will manage the onsite/offshore delivery of services. Other terms of the arrangement were not disclosed.
IBM announced a 5-year, 8 million euro IT services contract with German retailer SinnLeffers GmbH under which IBM will provide a range of IT infrastructure services to help the company to maintain its leadership in the market. SinnLeffers is one of the biggest German retailers in the textile industry with 47 fashion stores in Germany and annual revenues of EUR 500M.
EPAM Systems, Inc., a global offshore software development services company with development centers in Central and Eastern Europe, has been ranked among the world's best outsourcing service providers on "The 2007 Global Outsourcing 100" annual rating developed by the International Association of Outsourcing Professionals (IAOP). Additionally, EPAM is listed among the top outsourcing service providers serving Software and Technology companies.
Posted by jbowles at 07:10 PM
Alliances
Tata Consultancy Services, a leading global IT services, business solutions and outsourcing firm, announced plans with Microsoft Corporation to deliver Business Intelligence and Performance Management (BIPM) solutions to global companies.
Posted by jbowles at 07:06 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 07:06 PM
May 02, 2007
Top Stories
COMPANY-OWNED CAPTIVES ACCELERATE IN INDIA...Company-owned offshoring operations in India, known as “captives,” continue to grow at a rapid pace contrary to popular perception, according to a new, in-depth study from the Everest Research Institute. The Institute will host a Webinar on May 3, at 7 a.m. CDT, that will explore the evolution of the Indian captive landscape and highlight key emerging trends.
According to the study, Indian Captive Market – Trends and Implications, the captive market is growing at a 30 percent clip, which is directly in pace with the overall Indian offshore services market.
BISYS TO BE ACQUIRED BY CITI...BISYS, a leading provider of outsourcing solutions for the financial services sector, has agreed to be acquired by Citi in a transaction valued at approximately $1.45 billion. BISYS shareholders would receive $12.00 in cash per share, consisting of $11.85 per share to be paid by Citi at the closing of the acquisition and a special dividend of $0.15 per share in cash payable by BISYS, and conditioned upon the closing of the acquisition, for total consideration of $1.47 billion.
ACS PURCHASE COMPLETED...Cambridge Solutions Limited announced the completion of the sale of its government vertical, Albion, to Affiliated Computer Services, Inc., a US-based provider of business process outsourcing and information technology solutions in an all cash deal.
ADP REPORTS STRONG THIRD QUARTER...Automatic Data Processing, Inc. reported 14% revenue growth, to $2.2 billion, and $0.65 earnings per share from continuing operations for the third fiscal quarter ended March 31. Pretax and net earnings from continuing operations grew 15% and 16%, respectively, and diluted earnings per share from continuing operations increased 20%, from $0.54 a year ago on fewer shares outstanding.
HCL TEAMS WITH SABA...HCL Technologies Ltd., one of India’s leading global IT services companies and Saba, a top Human Capital Management (HCM) software and services provider, are teaming up to extend their services and relationships throughout Asia Pacific to Europe and North America. The two companies will align marketing efforts to provide coordinated software and IT services to mutual customers in several vertical markets including media & entertainment, healthcare, financial services, retail and hi-technology and manufacturing.
Posted by jbowles at 07:30 PM
New Business
Unisys Corporation has received final approval for a four year extension of the Los Angeles Eligibility, Automated Determination, Evaluation and Reporting (LEADER) contract. The four-year extension is valued at an estimated $108 million. Each year of the four-year extension is partly firm-fixed-price and partly time and materials. The LEADER system provides an online, real-time method for determining eligibility and benefits for the Department of Public Social Services’ assistance programs, including CalWORKs (the state’s public assistance program), Medi-CAL (the state’s Medicaid program), Food Stamps and General Relief.
Coca-Cola FEMSA, S.A. de C.V., the largest Coca- Cola bottler in Latin America and second largest in the world, has signed a three-and-a-half year contract extension with EDS for information technology (IT) services that will help the company manage its growth. The agreement extends delivery of numerous IT services EDS has provided for Coca-Cola FEMSA since 2000 and integrates its new operations into the existing Coca-Cola FEMSA IT infrastructure.
Posted by jbowles at 07:30 PM
European News
Capgemini Netherlands has signed the largest transformational outsourcing deal in its history with Rijkswaterstaat, the Dutch Directorate General for Public Works and Water Management. During this 7.5 year deal, worth 230 million Euro, Capgemini Netherlands and its partners will be responsible for the implementation and management of Rijkswaterstaat's IT infrastructure.
Fujitsu Services has won a GBP 80 million transformational outsourcing arrangement with the UK's Financial Services Authority (FSA), which the FSA said will fundamentally change the way in which IT supports its business.
Posted by jbowles at 07:29 PM
Alliances
Intrepid Learning Solutions has selected the SumTotal Enterprise Suite as a partner to support its Learning Business Process Outsourcing (LBPO) offering. Intrepid offers its clients a way to outsource all aspects of their training functions, including the technology for distributing learning, managing classrooms, handling registrations and tracking instructors. Leading global corporations such as The Boeing Company, Microsoft Corporation, and Autodesk, Inc. have selected Intrepid as their training outsourcing partner.
Corbus, a global leader in procurement outsourcing, and Ketera, a provider of On Demand Spend Management solutions, announced an alliance that will help optimize source-to-pay services for customers by bringing together expertise in spend management, technology enablement and continuous process improvement. Both companies will leverage each other’s service and solution offerings to improve customer metrics related to Quality, Cost, Delivery, and Compliance (QCDC) and help customers reach greater scales of cost productivity.
Posted by jbowles at 07:29 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 07:29 PM
