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October 31, 2007
Top Stories
WILLIAMS LEA SIGNS BILLION DOLLAR DEAL WITH READERS DIGEST...Global Corporate Information Solutions provider Williams Lea has entered into a multi-year exclusive partnership with The Reader’s Digest Association, Inc. (RDA), the world’s largest global publisher and direct marketer. The relationship represents a managed cost base of more than $1 billion over the contract duration and will see Williams Lea deliver outsourced print procurement and marketing solutions to RDA’s operations in 19 countries across the United States and Canada, Europe, Middle East, Asia Pacific and Latin America.
CSC ACQUIRES FIRST CONSULTING GROUP...Computer Sciences Corporation will acquire First Consulting Group (FCG) in an all-cash transaction for $13.00 per share, or approximately $365 million. The transaction is expected to be neutral to reported CSC earnings and accretive to free cash flow within the first 12 months. Headquartered in Long Beach, Calif., FCG provides information technology services and products to health delivery, health plan and life sciences organizations. FCG has approximately 600 employees located in Bangalore, India providing application development and support and business process outsourcing services. There are approximately 580 employees located in Ho Chi Minh City, Vietnam serving healthcare clients and independent software vendors with software development capabilities.
CERBERUS WITHDRAWS ACS OFFER...The Dallas News reports that Cerberus Capital Management officially withdrew its $6.2 billion offer for Affiliated Computer Services Inc. on Tuesday. Cerberus made its first offer on March 20, in conjunction with ACS founder and chairman Darwin Deason, who controls about 2 percent of ACS shares.
CONVERGYS EPS ON TARGET...Convergys third quarter revenues were $703.7 million. Operating income of $63.0 million increased 8 percent from the previous quarter and compared to $69.7 million in the same period a year ago. Net income of $41.8 million increased 8 percent from the previous quarter and compared to $45.2 million in the same period a year ago. Earnings were $0.30 per diluted share compared to $0.28 per diluted share in the previous quarter and $0.32 per diluted share in the same period a year ago.
PEROT SYSTEMS THIRD-QURTER REVENUE UP...Perot Systems Corporation announced that third quarter 2007 revenue was $655 million, an increase of 12% year-to-year over third quarter 2006 revenue of $583 million. Earnings per share (diluted) was $.20.
ACS APPOINTS HEAD OF F&A OUTSOURCING...Affiliated Computer Services, Inc. has appointed Ron Gillette senior managing director, finance and accounting (F&A), to lead and transform its global F&A outsourcing (FAO) business. His focus will be on standardizing the company's F&A processes and management to enable rapid growth in the expanding FAO market. He reports to Ann Vezina, president of the company's Commercial Solutions Group.
Posted by jbowles at 04:50 PM
New Business
Computer Sciences Corporation has won a contract to provide range support services to the U.S. Naval Air Warfare Center (NAVAIR), Aircraft Division, located in Patuxent River, Md. CSC estimates the value of the contract, which has a one-year base period, two one-year options and two one-year performance-based award terms, to be approximately $430 million if all options are exercised.
Posted by jbowles at 04:50 PM
International News
Cisco and Wipro Ltd have entered into a strategic alliance to jointly develop and deliver new IT infrastructure service solutions that combine Cisco’s networking solutions with Wipro’s infrastructure and managed services portfolio. The companies also announced the establishment of the Cisco Solution Centre at the Wipro Campus in Bangalore, India, which will develop and showcase new services and solutions, such as Cisco Unified Communications.
Siemens IT Solutions and Services will operate large parts of the local IT and telecommunications infrastructure for the industrial company Evonik at all its sites in the USA. The corresponding outsourcing contract will run for four years and is worth around 30 million euros. Evonik Industries is an international industrial company with the business areas of chemicals, energy and real estate.
Posted by jbowles at 04:50 PM
Deadline For Outsourcing Excellence Awards Norminations Extended to November 15
The deadline for nominations for Outsourcing Center’s 2008 Outsourcing Excellence Awards, sponsored by Everest Group and Forbes, is now November 15. The extension comes following a large number of expressions of interest and requests for more time.
“Since we started the Outsourcing Excellence Awards program in 1997 to recognize the best performers in the industry, we continue to receive an increasingly larger number of nominations each year because winners and finalists receive a significant amount of exposure and opportunities to share industry insights with large audiences,” said Debra Floyd, Chief Operating Officer of the Outsourcing Center. “Due to a larger than normal number of requests for extensions, we’ve decided to extend the deadline to allow more companies to participate in this key industry event that was created to identify, promote and learn from global best practice developments.”
The coveted awards recognize the most distinguished examples of successful buyer-supplier outsourcing relationships in several categories, including Best Partnership and Best Offshore. An independent judging panel of industry experts will evaluate each nomination on criteria that includes the relationship’s mutual benefits, effectiveness and business outcomes achieved.
Award winners will be featured in the annual Awards issue of the Outsourcing Journal (www.outsourcing-journal.com) as well as Forbes’ “Special Section” on outsourcing. Winners will also be invited to an elite celebration evening on the Forbes Highlander yacht, participate in an exclusive educational event that shares lessons and insights from each winner, and attend a black-tie gala and awards presentation at the “Oscars” of Outsourcing in New York City. Additionally, the Outsourcing Journal will feature stories throughout the year that profile award finalists.
The award-winning case studies of the winners and finalists in the Outsourcing Journal provide readers with a unique and comprehensive inside look at successful outsourcing relationships in today’s changing world. Historically, the award nominations and judging process reveals findings that include a wide range of information about successful alliances and make a critical contribution to the growing demand for insights to key success factors of strategic outsourcing. The case study profiles present insights about how suppliers can successfully help their buyers do more than just improve operational costs. In many cases, the studies reveal how the partnership helped the buyer meet new business needs, innovate processes or take advantage of new market opportunities.
Previous award winners include many of the world’s leading companies in every industry and demonstrate the importance of outsourcing in their strategies for business success. A list of all winners since 1997 is displayed at www.outsourcing-awards.com.
The nomination form and instructions are available at www.outsourcing-awards.com.
Posted by jbowles at 04:49 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 04:49 PM
October 24, 2007
Top Stories
EDS WINS $550 MILLION CONTRACT FROM CONTINENTAL AIRLINES...EDS and Continental Airlines today announced the signing of a seven-year information technology (IT) services contract valued at approximately $550 million. Under the agreement, EDS will manage Continental's compute environments, reservation systems, legacy application development and maintenance, field services, network and voice systems, help desk and complete desktop support. This agreement also calls for Continental and EDS to work together closely on a joint application modernization strategy, updating legacy systems to better suit the needs of Continental and its customers.
UNISYS NARROWS QUARTERLY LOSS...Unisys reported a third-quarter 2007 net loss of $31.0 million, or 9 cents per share. These results compared with a third-quarter 2006 net loss of $77.5 million, or 23 cents per share, which included a pre-tax restructuring charge of $36.4 million. Pre-tax retirement-related expense in the third quarter of 2007 was $22.8 million compared with $47.5 million a year ago. Revenue for the third quarter of 2007 declined 1 percent to $1.39 billion from $1.41 billion in the year-ago quarter.
EMPTORIS 7 RELEASED...Emptoris, Inc. announced the release of Emptoris 7, the company’s Supply and Contract Management software suite. Emptoris 7 includes solutions for contract management, sourcing, spend analysis, and compliance, as well as a significantly expanded supplier performance management solution.
GEVITY RELEASES ANSWER BOOK...Gevity, which serves as a fullservice human resources department for small- and mid-sized businesses, the release of the Gevity Answer Book. The Gevity Answer Book brings together seasoned business leaders and HR experts,including Dr. Christopher Collins of Cornell University’s Center for Advanced Human Resource Studies. Focusing on topics such as growing your business and maximizing people and performance.
Posted by jbowles at 08:18 PM
New Business
John Hancock Private Client Group has selected JPMorgan to provide separately managed account administration for the more than $1.6 billion in assets the firm manages. JPMorgan Managed Account Solutions will provide John Hancock Private Client Group (JH PCG) with a variety of services to automate back office functions for their 5,000 separately managed accounts (SMAs).
Posted by jbowles at 08:17 PM
International News
Patni Computer Systems Inc. announced a multi-year US$200 million deal with The Carphone Warehouse, a UK FTSE 100 company. Patni will become a key technology partner providing integrated services across consulting, systems integration, application development and maintenance. In addition, Patni will also be a key partner to The Carphone Warehouse for developing next-generation systems for its global telecom and retail operations. These services will be delivered across pan-European locations by Patni’s global consultants and global delivery centers in India.
Xerox Corporation won a seven-year, $82 million document management contract with EUROPART, Europe's leading commercial vehicle parts distributor. Xerox Global Services will manage the German company's office and production print services, invoice processing and customer service centers.
The Nielsen Company, the world's leading provider of consumer and media information services, and Tata Consultancy Services have reached an agreement in principle for outsourcing a portion of Nielsen's
Information Technology (IT) and Operations functions worldwide. Nielsen and TCS are in negotiations on a definitive agreement which they expect to execute in the near future.
Posted by jbowles at 08:17 PM
2008 Outsourcing Excellence Awards Nominations Deadline Extended to Nov. 15
The deadline for nominations for Outsourcing Center’s 2008 Outsourcing Excellence Awards, sponsored by Everest Group and Forbes, is now November 15. The extension comes following a large number of expressions of interest and requests for more time.
“Since we started the Outsourcing Excellence Awards program in 1997 to recognize the best performers in the industry, we continue to receive an increasingly larger number of nominations each year because winners and finalists receive a significant amount of exposure and opportunities to share industry insights with large audiences,” said Debra Floyd, Chief Operating Officer of the Outsourcing Center. “Due to a larger than normal number of requests for extensions, we’ve decided to extend the deadline to allow more companies to participate in this key industry event that was created to identify, promote and learn from global best practice developments.”
The coveted awards recognize the most distinguished examples of successful buyer-supplier outsourcing relationships in several categories, including Best Partnership and Best Offshore. An independent judging panel of industry experts will evaluate each nomination on criteria that includes the relationship’s mutual benefits, effectiveness and business outcomes achieved.
Award winners will be featured in the annual Awards issue of the Outsourcing Journal (www.outsourcing-journal.com) as well as Forbes’ “Special Section” on outsourcing. Winners will also be invited to an elite celebration evening on the Forbes Highlander yacht, participate in an exclusive educational event that shares lessons and insights from each winner, and attend a black-tie gala and awards presentation at the “Oscars” of Outsourcing in New York City. Additionally, the Outsourcing Journal will feature stories throughout the year that profile award finalists.
The award-winning case studies of the winners and finalists in the Outsourcing Journal provide readers with a unique and comprehensive inside look at successful outsourcing relationships in today’s changing world. Historically, the award nominations and judging process reveals findings that include a wide range of information about successful alliances and make a critical contribution to the growing demand for insights to key success factors of strategic outsourcing. The case study profiles present insights about how suppliers can successfully help their buyers do more than just improve operational costs. In many cases, the studies reveal how the partnership helped the buyer meet new business needs, innovate processes or take advantage of new market opportunities.
Previous award winners include many of the world’s leading companies in every industry and demonstrate the importance of outsourcing in their strategies for business success. A list of all winners since 1997 is displayed at www.outsourcing-awards.com.
The nomination form and instructions are available at www.outsourcing-awards.com.
Posted by jbowles at 08:17 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 08:16 PM
October 17, 2007
Top Stories
IBM THIRD QUARTER EARNINGS UP...IBM announced third-quarter 2007 diluted earnings of $1.68 per share from continuing operations compared with diluted earnings of $1.45 per share in the third quarter of 2006, an increase of 16 percent as reported. Third- quarter income from continuing operations was $2.4 billion compared with $2.2 billion in the third quarter of 2006, an increase of 6 percent. Total revenues for the third quarter of 2007 of $24.1 billion increased 7 percent (3 percent, adjusting for currency) from the third quarter of 2006.
FREEBORDERS TEAMS WITH EXPEDIA...Freeborders Inc. has partnered with Expedia, Inc., the world’s leading online travel agency, to create a technology development center for Expedia in China. This relationship will enable Expedia to enhance its core platforms and services and increase its technical agility as the company continues to expand its global footprint.
HP TO OPEN DELIVERY CENTER IN PANAMA...HP announced plans to build a global delivery center in Panama City, Panama, that will provide services to help customers better manage business information and optimize their technology infrastructures. Panama City was selected due to its well-developed information technology infrastructure, large pool of skilled workers, and government and university support.
Posted by jbowles at 09:06 PM
New Business
Jewish Hospital & St. Mary's Healthcare (JHSMH), a leading health system based in Louisville, KY, has selected the Perot Systems to deliver information technology services under a sole source contract. The financial terms of the 10-year agreement were not disclosed. Perot Systems will create a centralized information technology environment designed to bring the benefit of systems predictability to JHSMH, and will manage IT services such as data center operations, network operations, and the help desk among other functions.
Posted by jbowles at 09:05 PM
International News
Computer Sciences Corporation announced that its European Group signed a previously unannounced contract, as well as a previously announced award with no assigned value, during CSC’s fiscal 2008 second quarter, which ended September 28. These contracts have a total estimated value of approximately $171 million if all options are exercised. The contract performance periods range between five and eight years.
Unisys Corporation announced a global IT outsourcing agreement with Elekta, a leading provider of medical technology and clinical solutions based in Sweden. Unisys will manage Elekta’s global IT infrastructure to support the organisation’s worldwide operations. The contract, signed in the second quarter of 2007, has an estimated value of $21 million over seven years. Under the terms of the contract, Unisys will provide IT outsourcing services supporting 2,000 of Elekta’s employees in 22 offices across Europe, the United States and Asia. The initial rollout across all locations is planned for completion in mid-2008.
Patni Computer Systems Inc. announced a multi-year US$200 million deal with The Carphone Warehouse, a UK FTSE 100 company. Patni will become a key technology partner providing integrated services across consulting, systems integration, application development and maintenance.
Sutherland Global Services, a multinational Business Process Outsourcing (BPO) provider, has been selected by Deutsche Bank to provide data management services for its North American operations. Sutherland will architect a custom solution, maintain a detailed and centralized database, generate MIS reports and perform data analytics to help ensure Deutsche Bank meets certain NASD and NYSE regulatory requirements.
Xerox Corporation won a seven-year, $82 million document management contract with EUROPART, Europe’s leading commercial vehicle parts distributor. Xerox Global Services will manage the German company’s office and production print services, invoice processing and customer service centers.
Elcoteq SE, a leading integrated electronics manufacturing services (IEMS) company, has become the global manufacturing partner for Telsima, a leading developer of WiMAX based broadband wireless access (BWA) and DCME voice compression solutions. Elcoteq has started volume manufacturing of Telsima WiMAX CPEs StarMAX 2100 series at its facility in Bangalore, India.
Posted by jbowles at 09:05 PM
Deadline For Outsourcing Excellence Awards Norminations Extended to November 15
The deadline for nominations for Outsourcing Center’s 2008 Outsourcing Excellence Awards, sponsored by Everest Group and Forbes, is now November 15. The extension comes following a large number of expressions of interest and requests for more time.
“Since we started the Outsourcing Excellence Awards program in 1997 to recognize the best performers in the industry, we continue to receive an increasingly larger number of nominations each year because winners and finalists receive a significant amount of exposure and opportunities to share industry insights with large audiences,” said Debra Floyd, Chief Operating Officer of the Outsourcing Center. “Due to a larger than normal number of requests for extensions, we’ve decided to extend the deadline to allow more companies to participate in this key industry event that was created to identify, promote and learn from global best practice developments.”
The coveted awards recognize the most distinguished examples of successful buyer-supplier outsourcing relationships in several categories, including Best Partnership and Best Offshore. An independent judging panel of industry experts will evaluate each nomination on criteria that includes the relationship’s mutual benefits, effectiveness and business outcomes achieved.
Award winners will be featured in the annual Awards issue of the Outsourcing Journal (www.outsourcing-journal.com) as well as Forbes’ “Special Section” on outsourcing. Winners will also be invited to an elite celebration evening on the Forbes Highlander yacht, participate in an exclusive educational event that shares lessons and insights from each winner, and attend a black-tie gala and awards presentation at the “Oscars” of Outsourcing in New York City. Additionally, the Outsourcing Journal will feature stories throughout the year that profile award finalists.
Previous award winners include many of the world’s leading companies in every industry and demonstrate the importance of outsourcing in their strategies for business success. A list of all winners since 1997 is displayed at www.outsourcing-awards.com.
The nomination form and instructions are available at www.outsourcing-awards.com.
Posted by jbowles at 09:04 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 09:04 PM
October 10, 2007
Top Stories
A BILLION HERE, A BILLION THERE...Computer Sciences Corporation announced that since July 1, its North American Public Sector business unit has signed 123 previously unannounced contracts and subcontracts during its fiscal 2008 second quarter, which ended Sept. 28. These contracts have a total estimated value of approximately $1.1 billion if all contract options are exercised.
ACCENTURE TO ACQUIRE IP CONSULTING FIRM...Accenture has agreed to acquire Corliant, Inc., a privately held technology consulting firm that specializes in helping enterprises and communications service providers deploy and support advanced Internet Protocol (IP) networks. Terms of the agreement were not disclosed.
MANPOWER FIRST FOREIGN TEMP SERVICE IN CHINA...Manpower Inc. announced that it is the first foreign multinational corporation to obtain a temporary staffing business license in China. With more than 13 years experience recruiting permanent employees for clients in Mainland China, Manpower will introduce temporary staffing services to companies,
delivering a complete one-stop employment service solution for its clients in one of the world's fastest growing economies.
STELLAR EXPANDS IN PHILIPPINES...Stellar, a leading global call centre and business process outsourcing provider, is recruiting inbound customer service representatives for call center in Cubao. The current recruitment drive supports the recent acquisition of two new clients from North America who have outsourced their inbound call center services to Stellar.
Posted by jbowles at 04:44 PM
New Business
Accenture will provide WorldSpace, a global satellite radio company, with application development and maintenance services under a three-year outsourcing contract. Financial terms were not disclosed. Accenture will help WorldSpace implement application development strategies and maintenance services designed to help the company get its products and services to market quickly, increase operational efficiency, reduce operating costs and enhance revenue opportunities.
EDS and ArvinMeritor recently signed a new, six-year agreement for EDS to manage the tier-one automotive supplier’s U.S. and Canadian Information Systems (IS) infrastructure services. EDS will help enable enhanced capabilities, promote predictability in the system and speed ArvinMeritor’s ability to change with the evolving business climate. EDS will assume responsibility for ArvinMeritor’s IS infrastructure, which includes consolidating and hosting its midrange servers and mainframe computers in EDS data centers. EDS will provide support for the manufacturer’s data and voice networks, desktop and other end-user computing services, electronic messaging, and provide global call center services.
Affiliated Computer Services, Inc. announced a new contract with the Alaska Department of Health and Social Services to design, develop, implement, and operate a new Medicaid Management Information System (MMIS). The contract has a length of up to 10 years and a total value of $130 million, if three one-year options are exercised. The contract also calls for ACS to provide a full range of fiscal agent services, including claims processing, operations call center support, decision support and healthcare analytics, pharmacy support, and other operational support.
Posted by jbowles at 04:43 PM
International News
Commerzbank AG, Germany’s second-largest bank, will outsource to HP the management of 33,000 workstations and 12,000 printers as part of a five-year information technology services deal. Under terms of the agreement, HP will deliver to Commerzbank a full range of IT services, from infrastructure services to complete desktop lifecycle management. These services are part of the HP End User Workplace portfolio and include desktop management, network management, print management, server management and help desk services.
Unisys Corporation announced the signing of a five-year global IT outsourcing contract with Ciba Specialty Chemicals. Ciba is a leading global provider of specialty chemicals that enhance the performance, protection, strength, color, and other aspects of its customers’ products. Reinforcing Ciba’s global IT strategy, Unisys will provide a comprehensive range of IT services to 12,000 Ciba employees throughout Europe, the Americas and Asia. The services include end-user services, data center services and management of SAP solutions. The initial rollout across all locations is planned for completion in 2008.
IBM has signed a comprehensive information technology (IT) services agreement providing IT services to Sapa Profiles, the world's largest aluminium profile company, and a joint venture between Alcoa and Orkla's subsidiary Sapa. Under the seven-year agreement, IBM will provide infrastructure services and application maintenance services for about 2,500 users in Sapa Profiles, using IBM's Nordic and global delivery capabilities.
Posted by jbowles at 04:43 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 04:41 PM
October 03, 2007
Top Stories
EDS WINS $630 MILLION SABRE EXTENTION...EDS and Sabre Holdings announced the renegotiation and extension of an information technology (IT) services contract through 2014, with new revenue to EDS valued at approximately $630 million. Under the new agreement, EDS will provide a full range of IT services in support of Sabre’s continued business transformation, including its move to open systems. By adopting the EDS implementation of industry best practices through its tools and services, Sabre will be positioned to focus more energy on enhancing the end-customer’s experience through its innovative technology tools and services.
PEROT SYSTEMS WINS $400 MILLION DOE CONTRACT...Perot Systems Corporation's government subsidiary has been awarded the U.S. Department of Education's $400 million Education Department Utility for Communications, Application and Technology Environment (EDUCATE) contract. The ten year contract will serve to provide a broad range of information technology infrastructure services to the department.
ACXIOM TERMINATES MERGER AGREEMENT...Acxiom Corporation has terminated the previously announced acquisition of Acxiom by Axio Holdings, LLC, a company controlled by Silver Lake and ValueAct Partners. Acxiom, Silver Lake and ValueAct Partners have signed a settlement agreement pursuant to which Acxiom will receive $65 million in cash to terminate the merger agreement.
LUXOFT STUDY SUPPORTS MULTISOURCING...Luxoft announced results from the “2007 US ISV Market Report: Key Factors in Outsourcing” survey that included the surprising finding that ISV companies employing a multisourcing strategy ranked their overall perception of performance higher than those outsourcing their development work only to domestic providers. The difference is statistically significant – and consistent – across the 10 key business decision factors, including workforce experience and education, supplier domain expertise, supplier attrition rate, and cost savings, and particularly in the areas like quality and security which were identified as most important to ISV clients.
Posted by jbowles at 05:06 PM
New Business
The Australian Taxation Office (ATO) has extended its original US $1.8 billion outsourcing contract with EDS for another two years. The total contract value of the extension was not disclosed. Under the agreement EDS will continue to deliver information and communication technology (ICT) infrastructure services to the ATO until 2010. Current services include managing the ATO's computer mainframe and server environment and data storage and communications network and providing workplace and customer relationship management services.
Affiliated Computer Services, Inc. announced a seven-year, $111 million contract re-bid award with the Department of Health, Medical Assistance Administration of the District of Columbia to continue operating the District's Medicaid Management Information System (MMIS). ACS has been the District's Medicaid fiscal agent since February 2001 and received Centers for Medicare & Medicaid Services (CMS) certification for the District's current MMIS system in 2004. Under the renewed contract, ACS will provide, enhance and implement a CMS-certified MMIS, and will provide services to operate the enhanced MMIS and process District Medicaid claims.
Posted by jbowles at 05:05 PM
International News
Two South West Authorities have signed a contract to create a new Joint Venture company with IBM at a total value of approximately £400 million over ten years. This Joint Venture will establish a unique shared services approach to managing service delivery to approximately half a million residents and lead to cost savings and improved efficiency in the delivery of services, including customer services and access, workforce development and procurement. The sweeping agreement will also include managing the shared IT infrastructure for the councils.
The United Kingdom Ministry of Defence (MoD) has approved an amendment to the Defence Information Infrastructure (Future) (DII(F)) contract, confirming that the ATLAS Consortium will deliver DII Increment 2b, which extends DII(F) into the deployed – military operations – environment. This is 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 project to 2015 by US$489 (£269) million.
R.R. Donnelley & Sons Company has broadened its European document process outsourcing platform following the successful completion of the transition phase of its seven year outsourcing agreement with ING. Under the agreement RR Donnelley has assumed responsibility for operating thirteen facilities covering print and mail, mailroom management, scanning, reprographics and fulfilment.
Posted by jbowles at 05:02 PM
Everest Research Institute: Third-Party Outsourcing Suppliers Can Provide 5-15 Percent More Savings Than Captives; Best-in-Class Captives Can Match Third-Party Performance
Third-parties outsourcing suppliers are typically 5-15 percent less expensive than captives in terms of their total cost of operations, according to a recent study by the Everest Research Institute. The study makes a holistic comparison of costs across operating costs, productivity, transition, sales and marketing and margins. The cost advantage of the third-party model is derived primarily from better leverage of scale, leaner operating environments, more complex overhead management associated with most captives, as well as higher investments that captives make in knowledge transfer during offshore migration and creation of a more global culture. However, best-in-class captives are observed to operate at similar and even lower costs.
Although cost reduction is important, the study, Comparison of Outsourced and Captive Solutions for Capturing Value from Outsourcing, advises that a company’s decision of which model to leverage must be aligned with its near- and long-term strategic goals. The Institute will also host a Webinar on October 11 at 8 a.m. CDT, to provide multiple viewpoints on the third-party and captive offshore divide.
This report builds on to the results of a recent Everest study, Captive Value Diagnostic Study Market Update, which surveyed over 100 key executives who operate captives across global companies. The survey revealed that more than 85 percent of these executives believe that their captive operations are delivering on cost savings and service expectations, despite contrary opinions.
The Webinar will take place on October 11, 2007, at 8 a.m. CDT; 1300 GMT; 6:30 p.m. IST. To register, please visit: www.everestgrp.com/Webinars.
Posted by jbowles at 05:02 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 05:01 PM
