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August 29, 2007

Top Stories

HEWITT ACQUIRES REALLIFE HR...Hewitt Associates, Inc. is acquiring RealLife HR, a leading provider of benefits management services. Under terms of the agreement, RealLife HR delivers health and welfare benefits administration services via a proprietary platform targeted at employers with fewer than 15,000 employees and/or retirees.

SAPIENT NAMES MD FOR INDIA...Sapient has appointed Sandeep Dhar as managing director of its India operations. Dhar, a seasoned services industry executive, will oversee the company’s continued growth in India, reporting directly to Sapient CEO Alan J. Herrick. Sapient launched its India operations in 2000 and now has over 3,000 professionals in its Delhi and Bangalore offices.

OPI TOPS THE CHARTS...Outsource Partners International, Inc. (OPI)has been selected as the #1 Finance and Accounting Outsourcing (FAO) Vendor for Middle-Market Companies for the second consecutive year, and also has been chosen for distinction among the 2007 Top Ten Global Finance & Accounting Outsourcing (FAO) Vendors.

Posted by jbowles at 08:01 PM

New Business

Tata Consultancy Services has signed a multi-year contract with Hawaiian Airlines to provide comprehensive IT, business process outsourcing and infrastructure services. Founded in 1929, Hawaiian Airlines is one of the top ranked airlines in the United States and serves 17 domestic and international destinations in the Pacific region.

EDS has been awarded a $68 million contract extension by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), an organization within the U.S. Department of Justice, to provide day-to-day seat management services under the ATF Enterprise Standard Architecture III (ESA III) contract.

Affiliated Computer Services, Inc. has been awarded a renewed contract by the City of Riverside, Calif., to provide information technology (IT) services. The contract has a length of up to three years and a total value of $17 million if all options are exercised. Services provided include project management, help desk, desktop, network, application, operation, systems, and Geographic Information Services. ACS employs 57 full-time staff to provide these services.

ICG Commerce has signed a five-year deal with Chiquita Brands International to handle the food giant's indirect procurement. Under the deal, ICG Commerce will help Chiquita around the world to manage areas of indirect spend, including transport, marketing, MRO (maintenance, repairs and operations) and IT.

Posted by jbowles at 08:00 PM

European News

The Danish Agricultural Advisory Service and IBM have signed a seven-year, 13 million euro agreement for IBM to manage operations and support for the Service's Ø90 solution. The Ø90 solution manages bookkeeping, income statement, balance sheets and value added tax (VAT) accounts for farmers in Denmark.

Posted by jbowles at 08:00 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 07:59 PM

August 22, 2007

Top Stories

ALLIANZ OF AMERICA TAPS IBM...Allianz of America (AZOA), parent of Fireman's Fund Insurance Company and Allianz Life Insurance Company of North America, has signed a $330 million, 7-1/2 year outsourcing agreement with IBM that leverages the combined information technology (IT) infrastructure operations of both companies. The move is expected to save AZOA's two businessesaround 20 percent of their current annual IT infrastructure expenses.

HP THIRD QUARTER FINANCIAL RESULTS UP...HP announced financial results for its third fiscal quarter ended July 31, 2007, with net revenue of $25.4 billion, representing growth of 16% year over year, or 12% when adjusted for the effects of currency. GAAP operating profit was $2.1 billion and GAAP diluted earnings per share (EPS) was $0.66, up from $0.48 in the prior-year period.

UNISYS NAMES CRAIG CONWAY TO BOARD...Unisys Corporation has elected Craig Conway, former president and CEO of PeopleSoft and senior executive at Oracle Corporation, to its board.

ACS RESULTS RISE FOR QUARTER AND FISCAL YEAR...Affiliated Computer Services, Inc., announced fourth quarter fiscal year 2007 revenues of $1.52 billion, a 10% increase compared to the prior year quarter. Adjusted non-GAAP diluted earnings per share was $0.88, a 21% increase over the prior year fourth quarter adjusted non-GAAP diluted earnings per share of $0.73. Fiscal year 2007 revenues were $5.77 billion. Excluding the divestiture of the Welfare to Workforce Services business, total revenue growth was 10% compared to the prior fiscal year. Fiscal year 2007 adjusted non-GAAP diluted earnings per share was $3.12, an 11% increase over the prior year adjusted non-GAAP diluted earnings per share of $2.80.

INFOSYS EXPANDS TO LATIN AMERICA...Infosys Technologies Limited announced the creation of the company’s first Latin American subsidiary, and the opening of the development center and office for the region based in Monterrey, Mexico. The subsidiary, Infosys Technologies S. De RL De CV, provides the company’s full range of business consulting and information technology services for clients

SOFTTEK ACQUIRES CHINA-BASED FIRM...Softtek has completed the acquisition of I.T. UNITED, a leading China-based provider of software development and outsourcing services. With this acquisition, Softtek adds the eighth Global Delivery Center to its network of centers in Mexico, Brazil and Spain. Softtek has gained a strong reputation in the IT & BPO global sourcing industry through its trademarked Near Shore model, which pairs world-class execution with global proximity to fill the gap left by India-centric outsourcing models.

Posted by jbowles at 02:12 PM

New Business

IBM has signed a five-year agreement with Canadian Pacific to provide application development and support for the railway's corporate functions (including finance, accounting and HR), marketing and sales. This includes CP's intermodal business, an area of significant growth for CP, and its Business & Information Technology Services (BITS) Capabilities Program.

Affiliated Computer Services, Inc. was awarded a one-year extension of its contract to provide the City of Santa Clara, Calif., with information technology (IT) outsourcing services. The contract value is $4.2 million. The contract provides project management, help desk, desktop, network, application, operation, and systems services. ACS has 30 employees dedicated to the contract.

Computer Sciences Corporation announced that a leading global provider of healthcare and other insurance products has selected CSC's business process outsourcing (BPO) services to support its structured settlements business. The insurer will replace its manual processes and a non-strategic system with CSC's platforms and services, enabling the company to focus more on its core healthcare products.

BNY Mellon Asset Servicing has signed a five-year extension to its outsourcing agreement with The TCW Group, Inc., an asset management firm based in Los Angeles. Through the new agreement, BNY Mellon Asset Servicing will continue to support all of TCW's back and middle office investment operations, including trade processing, bank loan processing, investment accounting, partnership accounting, performance, attribution, analytics, financial statements, client billing and client statements

Posted by jbowles at 02:08 PM

European News

IBM and Omron announced a seven-year strategic services contract for IBM to manage Omron's information technology (IT) infrastructure operations in Europe. Omron is an international company involved in a variety of fields including: industrial automation, electronic components, automotive electronics, social systems and healthcare.

Kenexa has acquired Germany-based HRC Human Resources Consulting GmbH. Headquartered in Munich, HRC Human Resources Consulting GmbH (HRC) is one of the leading consultancies for business-orientated employee surveys in German-speaking countries. The acquisition of HRC will provide additional proprietary content to Kenexa’s current survey and performance management.

Satyam Computer Services Ltd. has been awarded a three-year contract by KPN for IT services, specifically, testing and quality assurance. KPN is a leading European telecommunications provider servicing customers in the Netherlands, Germany, and Belgium.

Posted by jbowles at 02:07 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 02:07 PM

August 15, 2007

Top Stories

HP AWARDED 7-YEAR GLOBAL SERVICES CONTRACT BY HEINEKEN...HP has been awarded a seven-year, global services contract by Heineken, one of the world’s leading international brewers, headquartered in the Netherlands. The contract covers industry-standard end-user workplace solutions – including help desk and desk-side support, desktop lifecycle services and mobility services – as well as print management, infrastructure management and LAN operations. Expanding on its long-term relationship as a hardware supplier for Heineken, HP will act as the single point of contact for a majority of the company’s global end-user workplace environment needs.

PEROT SYSTEMS ACQUIRES JJWILD...Perot Systems Corporation as entered into a definitive agreement to acquire JJWild, Inc., the preferred provider of integrated healthcare delivery solutions for organizations using the MEDITECH Healthcare Information System. Perot Systems will acquire the Canton, Massachusetts-based company for $89 million, subject to certain adjustments and offsets.

ADECCO ACQUIRES TALENTRACTK ASSETS...Adecco has acquired the assets of TalentTrack, LLC, a recruitment process outsourcing (RPO) company based in Toledo, Ohio. TalentTrack’s business model is built around its Talent Discovery Center, which is staffed by certified colleagues who deliver comprehensive recruitment solutions including research, sourcing, candidate mining, screening, assessment, selection, offer management and on-boarding.

Posted by jbowles at 07:41 PM

New Business

The U.S. General Services Administration (GSA) has awarded Accenture the Alliant Government-wide Acquisition Contract, a centralized contract enabling companies to provide global information technology services to all U.S. federal agencies. Accenture is among 29 companies awarded the Alliant contract, which enables them to bid on task orders covering a broad range of management and technical IT support services for U.S. federal government organizations in the areas of infrastructure, application services and IT management services. In total, the Alliant contract has a 10-year term (five-year base with one five-year option) and a $50 billion contract ceiling.

Allen & Overy,one of the world’s largest international law firms, with approximately 5,000 employees at 24 locations worldwide, will expand its current contract with SAVVIS to include outsourcing its UK server and storage IT infrastructure in a continued transition to fully managed services. The total contract with SAVVIS is worth in excess of $24 million (USD) and includes the initial $11.2 million deal (announced separately on January 31, 2006). Under the terms of the contract expansion, which is an additional $13.8 million, Allen & Overy will migrate its UK business-critical server and storage area network (SAN) operations to SAVVIS.

Affiliated Computer Services, Inc. has been awarded a seven-year contract to provide finance and accounting (F&A) services for Georgia-Pacific LLC, one of the world's leading manufacturers and marketers of tissue, packaging, paper, pulp, and building products. Financial details were not disclosed.

The General Services Administration (GSA) has designated Unisys a holder of the agency’s new Alliant contracting vehicle, under which the company can bid competitively on task orders. Alliant, a 10-year vehicle with a $50 billion ceiling, is the largest single IT contract the federal government has ever issued.

Affiliated Computer Services, Inc. has signed a seven-year, $21 million contract with the Government of Malta to improve the delivery of healthcare to patients and improve the accuracy of their healthcare information. The new agreement is the first phase of the Government's Integrated Health Information System (IHIS), which aims to improve the management of healthcare records and to integrate state-of-the-art digital medical equipment in Malta's 850-bed Mater Dei Hospital, the nation's largest healthcare facility.

Posted by jbowles at 07:41 PM

European News

Computer Sciences Corporation has signed an information technology (IT) services contract with Network Rail, owner and operator of the UK's railway infrastructure. The agreement, which has a five-year base period and one three-year option, coincides with a significant infrastructure investment by Network Rail essential to providing the UK with a safe, reliable and efficient railway. Under the terms of the contract, CSC will provide midrange services and Oracle ERP support. The midrange work includes server maintenance and management, data center hosting, security, disaster recovery planning and storage area network management. Approximately 70 members of Network Rail's current IT support team will transition across to CSC, including employees from previous contract incumbents.

Posted by jbowles at 07:40 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 07:32 PM

August 08, 2007

Top Stories

WIPRO TO ACQUIRE INFOCROSSING...Wipro Technologies, the global IT services business of Wipro Limited and Infocrossing, Inc., a US-based provider of IT infrastructure management, enterprise application and business process outsourcing services, announced that the companies have signed a definitive agreement for Wipro to acquire Infocrossing for $18.70 per share in an all cash deal that will create one of the world leaders in end-to-end IT infrastructure management solutions. The acquisition will be conducted by means of a tender offer for all of the outstanding shares of Infocrossing, followed by a merger of Infocrossing with a Wipro subsidiary. The tender offer is subject to a number of customary closing conditions, including regulatory approvals, and is expected to close by the fourth quarter of 2007.

FISERV TO ACQUIRE CHECKFREE...Fiserv, Inc., a leading provider of technology solutions, and CheckFree Corporation, a leading provider of financial e-commerce services and products, have entered into a definitive agreement whereby Fiserv will acquire CheckFree in an all-cash transaction valued at approximately $4.4 billion. Under terms of the agreement, CheckFree shareholders will receive $48.00 in cash for each share of common stock.

DARWINSUZSOFT CLOSES $48 MILLION FINANCING ROUND...DarwinSuzsoft, the leading U.S. IT services firm for outsourcing to China, has closed a $48 million round of financing led by Francisco Partners, one of the world’s premier technology-focused private equity firms. This is the first round of outside funding in the company’s 20-year history and one of the largest investments ever for an American IT outsourcing firm in China.

PAYCHECK SETS BILLION DOLLAR BUYBACK...Paychex, Inc. will commence the repurchase of up to $1.0 billion of the Company’s common stock in early August 2007. On July 12, 2007, Paychex announced the stock repurchase program and declared a 43% increase in the company’s regular quarterly dividend. The dividend increased from $.21 per share to $.30 per share, payable August 15, 2007 to shareholders of record August 1, 2007.

PEROT SYSTEMS NAMES COO...Perot Systems Corporation announced that Chief Financial Officer Russell Freeman will be promoted to chief operating officer. John Harper, currently vice president and director of corporate development, will become chief financial officer. In addition, Peter Altabef, president and CEO, will expand his responsibilities and join the executive committee of the board of directors. The moves will become effective August 15.

EVEREST GROUP OPENS AMSTERDAM OFFICE...Everest Group announced the opening of an office in Amsterdam to meet the needs of its growing continental European client base. The Amsterdam location is a natural progression for Everest as the company supports the extensive growth of European corporations’ adoption of outsourcing solutions including Business Processing Outsourcing (BPO), Information Technology Outsourcing (ITO), Human Resource Outsourcing (HRO) and Finance & Accounting Outsourcing (FAO).

Posted by jbowles at 06:51 PM

New Business

EDS has signed a $100.8 million, 73-month contract with the state of Ohio to design, develop and implement a new-generation Medicaid Information Technology System (MITS). The EDS Ohio interChange system will provide state-of-the-art IT services to Ohio’s 43,000 Medicaid providers and 1.7 million recipients, the sixth-largest Medicaid program in the United States. The agreement includes a 36-month implementation phase. The Ohio win brings to 21 the number of state Medicaid systems for which EDS serves as fiscal agent or principal IT provider.

Unisys Corporation has signed a five-year, multi-million dollar contract with Sprint to help the communications leader enhance its voicemail infrastructure. Unisys will develop a next-generation communications architecture that will allow Sprint the flexibility to more rapidly deploy new and innovative services for its customers.

Affiliated Computer Services, Inc. has been awarded a seven-year contract to provide finance and accounting (F&A) services for Georgia-Pacific LLC, one of the world's leading manufacturers and marketers of tissue, packaging, paper, pulp, and building products. Financial details were not disclosed. Under the terms of the contract, ACS will deliver a range of F&A solutions, including accounts payable services, cash applications, travel expense management, payroll tax, and accounting services.


Posted by jbowles at 06:51 PM

European News

The Dutch telecom provider KPN has selected IBM as its lead System Integrator to transform its billing systems, establish a new Customer Relationship Management (CRM) solution, and transform its business intelligence over the next three years. KPN provides Dutch consumers and consumer households with a range of fixed and mobile telephony, internet and TV services.

Posted by jbowles at 06:50 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 06:50 PM

August 01, 2007

Top Stories

WEYERHAEUSER TAPS HP FOR GLOBAL SERVICE CONTRACT...HP has signed a seven-year global IT services contract to run, manage and support the distributed IT environment of Weyerhaeuser Company, an international forest products company. Under the contract, HP will provide Weyerhaeuser a single point of contact for client and server management, software and storage management, business continuity and availability and disaster recovery solutions, as well as mission-critical technical support and lifecycle management services. HP will also provide End-User Workplace Solutions such as its Global Service Desk services and desktop, mobile and messaging solutions.

CSC NAMES PRESIDENT, AMERICAS OUTSOURCING...As part of the company’s comprehensive new growth strategy, called Project Accelerate, Computer Sciences Corporation announced that it is realigning company resources to strengthen its outsourcing business. Joe Doherty, 47, previously vice president, aerospace and defense industry within CSC’s Technology Management Group, has been named President, Americas Outsourcing. He will be responsible for execution of the company’s outsourcing strategy in the Americas, including growth in target market segments, as well as the integration of account management and service delivery organizations across the region.

ADP REPORTS STRONG YEAR...Automatic Data Processing, Inc. reported 14% revenue growth to $7.8 billion for the fiscal year ended June 30, 2007, Gary C. Butler, president and chief executive officer, announced today. Pretax and net earnings from continuing operations grew 19% and 21%, respectively. Diluted earnings per share from continuing operations of $1.83 increased 26%, from $1.45 per share a year ago on fewer shares outstanding, including the fiscal 2007 first quarter net one-time gain primarily from the sale of a Dealer Services’ non-core minority investment. Excluding the net one-time gain, diluted earnings per share from continuing operations were $1.80, an increase of 24% over last year.

BISYS SHAREHOLDERS APPROVE CITI MERGER...BISYS announced that its shareholders voted at a special meeting of shareholders to approve the previously announced merger providing for the acquisition of BISYS by a subsidiary of Citibank N.A. Over 99% of the shareholders present or represented at the special meeting voted for the adoption of the merger agreement. The votes cast represented the affirmative vote of holders of approximately 69% of the issued and outstanding shares of common stock of BISYS.

OPI NAMES MD...Outsource Partners International, Inc. announced the promotion of Bryan MacQuarrie to Managing Director. MacQuarrie, who has been at OPI since its inception in 2002, has served as the architect and manager of a number of outsourcing transitions for OPI clients. In this new role as Managing Director, MacQuarrie will also take on primary client management responsibilities.

Posted by jbowles at 05:39 PM

New Business

EDS has been selected by the U.S. General Services Administration (GSA) to provide information technology (IT) solutions for all federal government agencies under the newly awarded GSA Alliant contract. EDS is one of 29 companies that may compete for task orders under the $50 billion Indefinite Delivery/Indefinite Quantity contract.

YRC Worldwide has selected Perot Systems to support development of future business systems for the company's multiple brands. Terms of the multi-year consulting and applications services agreement were not disclosed. The business relationship includes supporting and modernizing current applications across divisions of YRC Worldwide. It also includes migrating to standard architecture and technology for applications across all functional domains.

The Rhode Island Department of Health has awarded EDS, the state’s longtime Medicaid fiscal agent, a three-year contract to design, implement and manage the nation’s first statewide network for electronic health records. The contract, valued at $1.7 million, includes four 12-month options and will be managed from EDS’ Electronic Health Record Center of Excellence in nearby Warwick. The network is expected to go live in the summer of 2008.

Posted by jbowles at 05:39 PM

European News

Satyam Computer Services, Ltd. has signed two multimillion-dollar contracts to support FIFA, one of the world's premier sports organization, and its major forthcoming events. Satyam has not only been selected to develop a customized Event Management System, but It has also been chosen to build an Extranet and intranet for FIFA over the next 12 months. Satyam's partnership will also include full, uninterrupted support for both solutions for FIFA.

Infosys Technologies Ltd has signed a multi-million dollar outsourcing contract with Royal Philips Electronics’ of the Netherlands. As part of the agreement, Philips will enter into a multi-year contract with Infosys BPO to provide Finance & Accounting (F&A) services and the processing of purchasing orders. Infosys will also acquire three shared service centers located in India, Poland and Thailand from Philips. The contract is among the largest Finance & Accounting BPO engagements from India and will expand Infosys’ global network, particularly strengthening its European operations.

Posted by jbowles at 05:38 PM

Maturing Finance & Accounting Outsourcing Market is Driving Innovation beyond Labor Arbitrage

Findings from a new Everest Research Institute study reveal that among all outsourced General and Administrative functions, Finance & Accounting Outsourcing (FAO) has the highest rate of global sourcing adoption, with 77 percent of contracts having elements of offshore delivery. As operating models continue to improve and output quality rises, more global buyers are looking to source a growing number of skills from multiple regions, and suppliers are driving innovation beyond pure labor arbitrage to remain competitive.

The study also recognizes key responsibilities for buyers. To identify a solution that fits their needs in this complex and competitive market, buyers must assess niche providers, delivery locations and global solutions. Buyers also will be responsible for co-driving innovation initiatives, such as engagement structuring and management, throughout the project lifecycle.

To read more about the evolving global sourcing trends in FAO, an extract of the report is available at www.outsourcing-center.com.

Posted by jbowles at 05:38 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 05:37 PM