December 19, 2007
Top Stories
MERCK EXTENDS DEAL WITH COGNIZANT...Cognizant announced a multi-year, multi-million dollar engagement with Merck & Co., a global research-driven pharmaceutical company. Cognizant will extend its existing relationship with Merck, dating back to 2005, to become a key technology partner and provide a full suite of services encompassing applications outsourcing, IT infrastructure management and business process outsourcing services.
PEROT SYSTEMS NAMES PRESIDENT OF GOVERNMENT SERVICES...Perot Systems Corporation announced that Eugene "Lee" Carrick has been appointed to serve as president of the company's government services unit. Carrick will succeed Jim Ballard, the current president who announced his intention to leave the company to pursue other opportunities. Carrick most recently served as Executive Vice President for National Security at Perot Systems. Carrick brings with him more than 26 years of experience working in the intelligence, defense and civilian markets. Prior to joining Perot Systems, Carrick directed a $480 million federal IT division at Northrop Grumman.
UNISYS MOVING HQ TO PHILADELPHIA...Unisys Corporation is relocating its corporate headquarters from Blue Bell, Pennsylvania to the city of Philadelphia. The company has signed a lease for 90,000 square feet of office space to establish its corporate headquarters at Two Liberty Place in center city Philadelphia. About 225 executive and corporate client-facing staff will relocate to the new location beginning in January 2009. The new headquarters location in Philadelphia will include a state-of-the-art client center for innovation, showcasing the company’s capabilities and solutions to clients and prospects.
Unisys said the move is designed to help the company enhance its image with clients and prospects, open opportunities for employees, and attract talent, while also allowing Unisys to reduce real estate expense.
International News
Cajasol, the financial institution established by the merger of Caja San Fernando and El Monte, has signed a four-year, 42.3 million euro-contract with IBMthat will help the savings bank to reach the business goals of the merger and achieve its growth objectives. The aim of the agreement, which includes IBM software, hardware and services, is to enhance the service provided to Cajasol customers. The new consolidated information technology (IT) platform will allow Cajasol to expand its business in Andalusia, Madrid and the Spanish Mediterranean Coast. It will also enable the company to offer higher quality and real-time services to a growing number of customers with greater flexibility and at a lower cost.
Large IT Outsourcing Mega-Deals an Infrequent Occurrence in 2008, According to Everest Research Institute
A fewer number of Information Technology Outsourcing (ITO) mega-deals will occur in 2008, according to the Everest Research Institute. A decline in the number and size of mega-deals, defined as contracts of $1 billion or more in total contract value, will instead result in a focus on existing mega-deal renewals and an increase in price competition by suppliers, according to a new study by the Institute.
“A decline in mega-deals is likely irreversible any time soon as few Fortune 100 companies remain that could sign new mega contracts,” said Ross Tisnovsky, Vice President of ITO Research at Everest Research Institute. “Next year, we expect buyers will gain pricing benefits due to the pressure suppliers will have to grow signings and contend with increased competition for contract renewals. In the large enterprise market segment, comprised of Fortune 1000 companies, we also foresee long-term price decline in the Infrastructure Outsourcing (IO) market due to an influx of new suppliers and increased competition where the most opportunities for ITO exist.”
The Institute study, How Structural Changes in the ITO Market are Likely to Affect the Industry, analyzed the market from the client point of view to study how buyer-driven structural changes will affect the ITO market. The analysis examined the three basic ITO market segments: mega-deals, large enterprises, and small and medium business (SMB).
In addition to conclusions about a mega-deal decline, key findings of the study include:
Relationship consolidation in large enterprises segment will present multiple improvement opportunities to buyers, enabling them to benefit from lower governance overhead and better prices.
Labor arbitrage will continue to be a significant driver of value in ADM (application development and maintenance) and will continue penetrating Infrastructure Outsourcing (IO), resulting in increased competitive intensity and price pressure
Increased market velocity (i.e., shorter durations and faster contract renewal cycles) will present buyers with more opportunities to renegotiate contracts and consider alternative suppliers.
Despite multiple initiatives by numerous suppliers to expand into the SMB market, this market segment is likely to remain underserved and continue to be serviced by smaller suppliers with limited capabilities.
To read more about the results of the Information Technology Outsourcing Market Update study, an extract of the report is available at www.outsourcing-center.com. To purchase the report or receive more information about other research services, please e-mail info@everestresearchinstitute.com or call +1-214-451-3110.
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December 12, 2007
Top Stories
EDS WINS $715 MILLION DEAL FROM BRISTOL-MYERS SQUIBB...EDS announced a seven-year, $715 million information technology (IT) services contract that calls for EDS to manage Bristol-Myers Squibb's IT environment, which includes the company's critical operations data at Bristol-Myers Squibb data centers around the world. The contract initially covers IT services in the Americas and Asia Pacific regions, with the opportunity to include Europe, the Middle East and Africa. Additionally, EDS will provide computer capacity to Bristol-Myers Squibb from its data center in Auburn Hills, Michigan.
ACCENTURE COMPLETES DEFENSE ACQUISITION...Accenture has completed its acquisition of MAXIM Systems, Inc., an employee-owned defense consulting firm that provides advanced engineering and technical services in the areas of command and control, multi-level security and satellite communications. Terms of the sale were not disclosed. The acquisition expands Accenture’s Defense practice with the addition of San Diego-based MAXIM Systems’ capabilities in designing, developing, installing and supporting systems for C4ISR — which stands for Command, Control, Communications, Computers, Intelligence, Surveillance and Reconnaissance — for military and intelligence agencies.
RPO INDUSTRY CONTINUES TO GROW...The Recruitment Process Outsourcing (RPO) industry continues to gain the interest of new service sectors fueling the annual growth of this growing industry. During the second half of 2007, RPO leader The RightThing has inked deals with Wal-Mart, Vail Resorts and Harvard University which represent the retail, hospitality and higher education industries respectively. In addition, The RightThing continues to deepen its share of more mature markets including new contracts with Chubb Insurance (financial), Covidien (healthcare), MedImmune (pharmaceutical), MedPointe
first ever Best Outsourcing Thought Leadership Awards.
New Business
The Idaho Department of Health and Welfare has awarded Unisys two seven-year, firm-fixed price contracts to provide systems and operational services as fiscal agent for the state’s Medicaid program. The contracts consist of a two-year system design, development and implementation phase, followed by five years of operations totaling $116.5 million. There is an additional three year option, exercisable by mutual agreement, worth $51 million. If the option is exercised the total contract value is $167.5 million.
Computer Sciences Corporation has won a contract to provide program management and information technology (IT) services for the U.S. Navy’s Naval Network Warfare Command (NETWARCOM) Cyber Asset Reduction Security and Task Force (CARS TF) program. CSC estimates the value of the contract, which has a one-year base period and three one-year options, to be $66 million if all options are exercised.
International News
Siemens Metals Technologies is to take over complete responsibility for electrical and mechanical maintenance of all the machinery and equipment involved in the steel production process – from the sinter plant and blast furnace to the steel works and slab caster. The customer is ThyssenKrupp CSA Companhia Siderùrgica, which will entrust Siemens with complete responsibility for lifecycle servicing of its new integrated iron and steel works in Brazil. The contract will run for 15 years and the order is worth around 700 million euros.
FAO Buyers Shifting Focus to an End-to-End Process-Driven Approach: O2C and P2P Adoption on the Rise
Companies outsourcing finance and accounting functions such as accounts receivable, accounts payable and general accounting in a piecemeal manner are increasingly seeking end-to-end process solutions to gain additional cost savings, business benefits and strategic impact, according to a new study by the Everest Research Institute.
The Institute’s study, Outsourcing Order-to-Cash (O2C) and Procure-to-Pay (P2P) – Opportunity to Create Business Impact, reveals that, although most buyers are relatively satisfied with their FAO contracts, business and strategic impact through outsourcing remains elusive as key pain-points continue to plague the financial supply chains for most buyers. As a result, more than two-thirds of buyer-organizations surveyed for the study have expressed some level of interest in the outsourcing of Order-to-Cash (O2C) and Procure-to-Pay (P2P) processes.
“With expansion of scope, the value proposition of outsourcing extends from being purely cost-based to cost-plus,” said Katrina Menzigian, Vice President of Research, Everest Research Institute. “There needs to be reprioritization of outsourcing value levers as scope expands to end-to-end outsourcing. While labor arbitrage and scale continue to be important value factors, value levers such as domain expertise, process optimization, and automation assume much greater importance.”
Suppliers are clearly responding to buyer demand as 85 percent of those surveyed in the study responded that they either provide or plan to offer outsourced O2C and P2P solutions. A third of the surveyed suppliers are also committed to developing vertically-focused O2C/P2P offerings and are targeting financial services, manufacturing and retail clients.
According to the study, although the potential of utilizing an end-to-end approach is being realized, challenges remain in this nascent market, including lack of market maturity that varies by sub-processes. The greater challenge, however, is found in resolving conflicting interdepartmental priorities and transitioning function mindsets to process-focused thinking.
“Finance and customer interaction organizations need to work together in order to tackle a true O2C process while the procurement arm of an organization needs the same type of relationship with finance to execute a true P2P,” said Saurabh Gupta, Research Director, Everest Research Institute and co-author of the report. “From a supplier perspective, we believe the evolving market will lead to platform-based FAO solutions that will cause buyers to move to more standardized solutions.”
The Institute study results were drawn from an analysis of more than 240 multi-process FAO contracts, surveys of finance and accounting outsourcing (FAO) buyers and suppliers, and focused interviews with leading FAO suppliers that included Accenture, Genpact, IBM, Infosys BPO, IQBackOffice, VWA and Wipro.
Other study findings include:
Suppliers scaled down O2C/P2P offerings to appeal to the upper-end of the mid-market, but the lower-end of the mid-market continues to be highly under-penetrated.
Buyer interest in outsourced O2C/P2P is apparent across all segments – both the mid-market and the large buyer segment.
Suppliers offering end-to-end processes can gain opportunities for additional revenue potential, testing platform-based FAO solutions and differentiation from competitors.
To read more about the results of the Outsourcing Order-to-Cash (O2C) and Procure-to-Pay (P2P) – Opportunity to Create Business Impact study, an extract of the report is available at www.outsourcing-center.com. To purchase the report or receive more information about other research services, please e-mail info@everestresearchinstitute.com or call +1-214-451-3110.
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December 05, 2007
Top Stories
RITTENMEYER SUCCEEDS JORDAN AS BOARD CHAIRMAN AT EDS...EDS announced its board of directors has elected Ron Rittenmeyer chairman of the board. Rittenmeyer, 60, will also retain the titles of president and chief executive officer. He will succeed Mike Jordan, 71, who will become chairman emeritus and will step down from the board of directors. Both appointments are effective December 31, 2007. Jordan, who joined EDS in March 2003, will remain with EDS and serve as a strategic adviser to the company’s senior leadership team.
CAPGEMINI OPENS FIRST CENTER IN BUENOS AIRES..Capgemini has opened its first Advanced Development Centre in Buenos Aires to support European and North American clients operating in the South American market, initially focusing on Spanish clients. Planned development means that the centre should reach 1,500 professionals by 2009.
EDS SIGNS BIGGEST EVER POLISH OUTSOURCING DEAL... EDS has signed a US$52 million, five-year information technology (IT) outsourcing agreement with Telekomunikacja Polska, a major company in the TP Group (TP), and a leading telco operator in Poland. France Telecom, a leading global provider of telecommunication services, holds approximately 47.5 percent equity in TP. The deal is the largest technology infrastructure outsourcing contract ever signed in Poland. Under the contract, as of December 1, 2007, EDS assumes responsibility for TP’s and PTK Centertel’s (the mobile telecommunications company of the TP Group) desktop management infrastructure.
COMPUCOM NAMES CIO...CompuCom Systems, Inc. announced that Laurie Simon has been named Chief Information Officer, effective immediately. Simon will report to Jeff Frick, Chief Operating Officer, and will be responsible for leading day-to-day IT operations, setting IT strategy and executing key initiatives to ensure the company continues to achieve business goals with a reliable infrastructure.
FREEBORDERS LAUNCHES GLOBAL DELIVERY MODEL...Freeborders, Inc., the leading provider of Technology solutions developed in China, announced today that it has launched CHINDUS(sm), a unique global delivery model for providing software services from China. CHINDUS(sm) leverages best practices for delivering IT services, including software outsourcing and offshore development, from the U.S., India, and China.
International News
Computer Sciences Corporation announced that its operations in Denmark have signed a five-year, $76 million (390 million Danish Kroner) information technology (IT) outsourcing agreement with Det Berlingske Officin, a major newspaper publisher in Denmark. Berlingske, which produces 14 daily newspapers and nearly 50 regional papers, is a part of the Mecom Group, a leading European regional publisher with operations in Denmark, Norway, Holland, Germany and Poland. Under the contract, CSC will provide help desk services, server management, project development and management, and applications development, maintenance and support. As a part of the outsourcing arrangement, approximately 70 employees will transition from Berlingske’s IT group to CSC.
Argentina's third largest private financial institution Banco Patagonia has signed an IT services agreement valued at $5.7-million with IBM. Under the agreement signed last month, IBM will manage consolidation, virtualization, technology updates, implementation of a backup datacenter, and all administration and support services for the bank's servers. The new contract also will provide external storage for the bank's main datacenter, backup datacenter and for all critical services provided by IBM. This agreement is an expansion of a 10-year, $15-million technology outsourcing agreement Banco Patagonia signed with IBM in 2005.
Care Management International, Inc. announced an alliance with WNS (Holdings) Limited, a leading provider of offshore business process outsourcing (BPO) services. Care Management International and WNS jointly will offer a comprehensive suite of smart sourcing medical management and care management solutions, such as transaction-based care services, health risk assessments, data analysis and member outreach programs.
Impact of US economy on IT outsourcing spending in 2008 to be debated by Everest Research Institute and Bernstein analysts in Dec. 11 Webinar
Information technology services analysts from the Everest Research Institute and Sanford C. Bernstein & Co. will discuss – and debate – the impact of the U.S. economy on IT services spending in 2008 in a one-hour Webinar on December 11, 10 a.m. CST.
Ross Tisnovsky, Vice President of ITO Research at Everest Research Institute, and Senior Analyst Rod Bourgeois of Bernstein Research will offer differing opinions about the potential impacts of a lean economy and IT spending slowdown on IT services. Their topics will include:
- The case for both pessimistic and optimistic points of view regarding 2008 IT services spending
- IT services segments most likely to be affected by cyclical changes
- The lessons learned from prior slowdowns and factors that are different in the current era compared to the past
“There is a deep concern that the economic climate in the United States will impact what and how much buyers will spend on IT services or possibly eliminate next year,” said Tisnovsky. “The most insightful way to analyze the potential impact of a slowdown is take the buyer’s point of view and thereby consider what buyers are likely to do next year under certain economic conditions.”
“Our research suggests the IT services industry today is not as cyclical as it was in past eras. So, we think recent worry among investors about a slowdown in IT services is likely to prove overblown,” said Bourgeois.
The 45-minute Webinar, followed by 15 minutes of questions and answers with participants, will take place on December 11, 2007, at 10 a.m. CST; 11 a.m. EST. To register, please visit: www.everestgrp.com/Webinars.
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November 28, 2007
Top Stories
KPMG REPORTS DOUBLE DIGIT GROWTH...KPMG, the global network of professional service firms providing Audit, Tax and Advisory services, announced that member firm combined revenues increased to US$19.8 billion for the fiscal year ending September 30, 2007, versus US$16.9 billion for the prior fiscal year, reflecting double-digit growth across all of KPMG's service lines. KPMG's combined revenues represent growth of 17.4 percent in U.S. dollars and growth of 12.7 Percent in local currency terms.
GENPACT EXEC WINS FAO TODAY AWARD...Genpact Executive Vice President Tiger Tyagarajan is one of four individuals recognized by FAO Today magazine for outstanding accomplishment in finance & administrative outsourcing. FAO Today covers the $39 billion finance and administrative outsourcing industry and distributes to more than 22,000 financial executives interested in globalization and best-in-class operational strategies. A total of six awards, recognizing the outstanding accomplishments of four executives and two organizations were announced at this month’s FAO Today ONE Conference for Finance and Procurement Globalization in Atlanta.
CONCENTRIX EXPANDS VOICE DELIVERY SERVICES...Concentrix Corporation, a wholly-owned subsidiary of SYNNEX Corporation, has officially launched the offering of voice delivery services in Mandarin and native Korean from its facility in Chengdu, China. Building on a five-year history of providing business process outsourcing (BPO) services in China, Concentrix is now providing North American businesses with true in-language customer service and support in Mandarin and native Korean. Mandarin is the fourth commonly spoken language in the United States and is the most prevalent language in the world with roughly twice as many English speakers.
New Business
Capgemini announced the extension of its Business Process Outsourcing (BPO) engagement with SKF, a leading supplier of products, solutions and services in the area comprising rolling bearings, seals, mechatronics, services and lubrication systems, for the Group’s US operations. SKF has been a client of Capgemini’s Technology Services for many years. In October 2006, this collaboration extended to include BPO with the signature of a 7 year BPO deal to provide Finance & Accounting services for several of their European operations. This contract extension to SKF’s US operations aims to support the SKF global standardization of Financial Operations across continents and divisions of operation.
The U.S. Department of Veterans Affairs (VA) awarded EDS an $11.6 million contract to help the department develop and provide personal identity verification (PIV) card solutions to all VA employees, affiliates
and contractors in accordance with Homeland Security Presidential Directive 12 (HSPD-12). Under the Personal Identity Verification Deployment and
Operations/Maintenance (PIV DOM) contract, EDS will support the VA objective to issue PIV cards for authentication and identity verification services in a commonly accepted identification card recognized across the federal government.
Affiliated Computer Services, Inc. announced a seven-year, $35 million extension to its existing Emergency Medical Services (EMS) billing contract with the City of Houston. Under the terms of the contract, ACS recovers ambulance transport fees for the Houston Fire Department from third party payers, such as Medicaid, Medicare, and private insurance firms. As part of the billing service, ACS also provides all mobile software and hardware required for the city's EMS operation.
ACS also announced a contract with the Idaho Department of Health and Welfare to provide pharmacy benefits management (PBM) services for its Medicaid program. The contract has a length of up to 10 years and a total value of $18.5 million, if a three-year option is exercised.
International News
Unisys Corporation announced that its UK subsidiary has signed a seven-year IT outsourcing services contract with The Diamond Trading Company Limited (DTC), the London-based sales and marketing arm of the De Beers family of companies. The contract has an approximate value of $16.5 million. Under the contract, Unisys will manage the DTC’s data centre server environment. This includes supporting virtualisation technology, which helps server computers perform more tasks more quickly. The Unisys solution is designed to create a comprehensive IT architecture that supports the DTC’s strategic software applications and helps the company enhance supply chain efficiencies.
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November 14, 2007
Top Stories
EDS PURCHASES MAJORITY STAKE IN SABER HOLDINGS...EDS has agreed to purchase an approximate 93 percent equity interest in Saber Holdings, Inc., a leading provider of software and services to U.S. state governments, from various sellers, including majority shareholder Accel-KKR, for approximately $420 million in cash. Saber’s Chief Executive Officer Nitin Khanna and President and Chief Operating Officer Karan Khanna will retain an approximate 7 percent interest in Saber and continue to lead the company following the closing. Saber, founded in 1997, is one of the world’s fastest-growing providers of software products and services that enable state and local governments to better serve citizens. The Portland, Oregon-based company, which has operations in 35 states, more than doubled its revenue each year since 2004.
CERIDIAN ACQUISITION COMPLETED...Ceridian Corporation, Thomas H. Lee Partners, L.P. and Fidelity National Financial, Inc. announced that THL Partners and FNF have completed the acquisition of Ceridian for approximately $5.3 billion. Under the terms of the merger agreement, Ceridian stockholders are entitled to receive $36.00 in cash, without interest, for each share of Ceridian common stock that they hold. Ceridian common stock ceased trading on the NYSE before commencement of trading on November 9, 2007 and will be delisted from the NYSE.
CHANGE AT HELM AT ACXIOM...Acxiom Corporation announced that Charles Morgan has retired, effective immediately, from the board and as company leader. Morgan has entered into a transition agreement with the company and has agreed to serve as interim company leader until his successor is selected. In addition, Morgan has agreed to serve as a consultant to the company for up to three years, focusing on technology and innovation. The company also announced that its board of directors has elected Michael J. Durham to serve as the non-executive chairman of the board of directors.
FED TAPS PAYCHEX EXECUTIVE...The board of directors of the Federal Reserve Bank of New York have elected Jonathan J. Judge, president and chief executive officer of Paychex, Inc., to the board of directors of the Buffalo Branch, Federal Reserve Bank of New York. The Buffalo Branch consists of seven members, three of whom are appointed by the Board of Governors of the Federal Reserve System. The remaining four are appointed by the board of directors of the Federal Reserve Bank of New York. Branch board of directors are leaders representing various industries throughout upstate New York, including banking, manufacturing, health care, agriculture, labor and energy.
ACS NAMES HEAD OF F&A...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.
ADP RAISES DIVIDEND 33RD YEAR IN A ROW...The board of directors of Automatic Data Processing, Inc. approved a 26% increase in the cash dividend to an annual rate of $1.16 per share, Gary C. Butler, president and chief executive officer, announced today. The new quarterly dividend of 29 cents per share compares with the previous quarterly dividend rate of 23 cents per share. This increased quarterly dividend will be distributed on January 1, 2008 to shareholders of record December 14, 2007. The increased cash dividend marks the 33rd consecutive year in which the company has raised its dividend.
New Business
Computer Sciences Corporation has been awarded a task order to provide technical and process support services for the Information and Customer Service Division (ICSD) of the U.S. Citizenship and Immigration Services (USCIS) within the U.S. Department of Homeland Security (DHS). CSC estimates the value of the task order, which has a six-month base period and four one-year options, to be $34 million if all options are exercised.
International News
Cablemás S.A. de C.V., the second-largest cable television operator in Mexico, has renewed its billing agreement with Convergys for five years. The renewed agreement continues the licensing, maintenance, and support of Convergys’ ICOMS convergent voice, video, and data billing and customer care solution for Cablemás.
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November 07, 2007
Top Stories
ACCENTURE SIGNS $400 MILLION DEAL WITH THOMAS COOK...Accenture will provide Thomas Cook Group plc with application management, technology infrastructure management, finance, accounting and human resources services under a US$400 million outsourcing agreement the two companies signed recently. The contract, which supersedes an agreement the two companies signed in early 2002 for similar services, is designed to enable Thomas Cook to integrate a range of MyTravel plc functions into existing Thomas Cook outsourced operations following the merger of the two companies this past June.
UNITEDHEALTHCARE ACQUIRES FISERV HEALTH...UnitedHealthcare will acquire substantially all of Fiserv’s health-related businesses for $775 million in cash. The transaction includes Fiserv Health, a leading administrator of medical benefits; Avidyn Health, a care facilitation business; and the Fiserv Health Specialty Solutions businesses (which include J.W. Hutton, a subrogation and overpayment recovery organization, and ppoONE, a claim repricing and data management service). Fiserv Health’s Pharmacy Benefits Management business (PBM) Innoviant will also be part of the transaction.
CSC TO ACQUIRE FIRST CONSULTING GROUP...Computer Sciences Corporation and First Consulting Group, Inc. have entered into an agreement and plan of merger through which CSC 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.
DEADLINE FOR OUTSOURCING EXCELLENCE AWARDS IS NOVEMBER 15...The deadline for nominations for Outsourcing Center’s 2008 Outsourcing Excellence Awards, sponsored by Everest Group and Forbes, is now November 15. 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.
New Business
EDS and Daimler Financial Services announced a three-year agreement for transition and data center hosting services. EDS will relocate and then manage the financial services company’s information technology (IT) environment so that Daimler Financial Services can focus on its Mercedes-Benz Financial and Daimler Truck Financial wholesale, retail and lease core business. Under the agreement, EDS will transition and then manage the Daimler Financial Services computing environment, including consolidating and hosting its approximately 150 midrange servers and its mainframe computers and data storage in EDS data centers in Auburn Hills, Mich. and Sacramento, Calif. Daimler Financial Services manages wholesale and retail loans portfolios, hosts Web sites and runs internal systems within this computing environment.
International News
Siemens IT Solutions and Services has won two outsourcing orders in Denmark: Siemens will operate the entire IT infrastructure for the biotechnology company Novozymes and the computer centers for the energy utility Dong Energy. Both orders are extensions to existing contracts, will run until 2010 and are jointly worth around 8 million euros.
Outsourcing of HR Functions to Regain Momentum in 2008, according to Everest Research Institute
Outsourcing of human resource functions – including the most commonly outsourced functions of payroll, benefits, employee data management, information systems, and contact centers -- is expected to increase in 2008 after remaining relatively flat since 2005, according to the Everest Research Institute. While all market segments present significant growth potential, the Institute’s annual Human Resources Outsourcing (HRO) market study predicts mid-sized, North American and European companies will spark the growth. The Institute will hold a Webinar on November 6 at 9 a.m. CST to present study findings and insights.
According to the Institute, the cumulative total contract value of human resources outsourcing transactions reached US $21.2 billion in 2006 and is expected to be US $25.4 billion by the end of this year. The Institute’s study, Human Resources Outsourcing (HRO) Annual Report: November 2007, attributes future HRO growth to existing suppliers that have decreased transition costs and timeframes and are promoting standardized offerings. With the current penetration level of HRO being low in all market segments and across geographies, suppliers are focusing on the largely underserved mid-market and are offering compelling price points. According to the study, North American buyers account for more than 70 percent of HRO transactions, but Europe has seen increased deal signings over the past three years. Manufacturing, financial services and high-tech and telecom are the leading buyers of HRO overall.
The annual report is the first of a two-part study of the HRO market. The second part, the 2007 Global HRO Supplier Landscape, will be released in December.
The Webinar will take place on November 6, 2007, at 9 a.m. CST; 3 p.m. GMT; 8:30 p.m. IST. To register, please visit: www.everestgrp.com/Webinars.
For additional information and an extract of the HRO Annual Update, please visit www.outsourcing-center.com. You may also call 214-451-3110 to schedule a personal briefing appointment.
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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.
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.
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.
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.
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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.
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.
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).
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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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.
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.
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.
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.
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.
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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.
September 26, 2007
Top Stories
IBM WINS MAJOR DEAL WITH SCOTIABANK...IBM announced a multi-year agreement valued at $480 million Cdn to manage Scotiabank's information technology operations, including data centers, branches, automatic banking machines and help desk support. Terms of the agreement call for the application of advanced technologies -- such as server virtualization -- and new service delivery capabilities. The contract also includes a new global framework to support Scotiabank's worldwide operations.
COGNIZANT ANNOUNCES DIVIDEND, REPURCHASE PLAN...Cognizant Technology Solutions Corporation has declared a two-for-one stock split on its capital stock in the form of a stock dividend. Stockholders of record as of October 1, 2007 will be entitled to one additional share of common stock for each share held on the record date. The stock dividend distribution is expected to occur on or about October 16, 2007, and it is anticipated that the company's Class A Common Stock will begin trading on a post-split basis the business day following the distribution date. In addition, the Cognizant Board of Directors authorized a share repurchase program of up to $100 million of the Company’s common stock over the next 12 months.
LUXOFT REPORTS STRONG REVENUE GROWTH...Luxoft, Russia’s largest provider of high-end IT outsourcing services and product development announced strong growth in Q1 FY07 across revenues, clients and headcount compared with Q1 FY06. The company has posted double-digit-plus growth each quarter since its formation in 2000. Revenue for the quarter was $27.87M, up from $11.89M, representing a 134-percent increase over Q1 FY2006.
New Business
Convergys Corporation has signed a three-year $46 million customer care contract with a large U.S. industrial manufacturer to support its contact center transformation initiative. Convergys will provide transformational planning, customer care support, speech applications, learning, and business intelligence solutions supporting the industrial manufacturer’s own, extensive, contact center operations.
BNY Mellon Asset Servicing will provide U.S. and global back office support for Huber Capital Management LLC, a Los Angeles-based investment management firm that specializes in U.S. equity value strategies. BNY Mellon Asset Servicing will provide a wide range of value-added support services, including transaction
processing, portfolio accounting, reconciliations, performance measurement, client reporting, and client billing.
OMX, a leading expert in the exchange industry, has signed a seven-year agreement to outsource its global customer network operations and data center management to Verizon Business. OMX owns and operates the Nordic Exchange and supplies exchange technologies to more than 60 exchanges, clearing organizations and central securities depositories in 50 countries worldwide. The company employs more than 1,500 people within its operations in Australia, Canada, China, Denmark, Estonia, Finland, Hong Kong, Iceland, Italy, Latvia, Lithuania, Norway, Singapore, Sweden, United Arab Emirates, the United Kingdom and the United States.
International News
Capgemini has signed a five-year agreement with NXP Semiconductors, the independent semiconductor company founded by Philips, to provide end-to-end Finance and Accounting (“F&A”) services, including Procure-to-Pay and Record-to-Report. Under the terms of the agreement, which expands the existing long-term relationship between the two companies,
approximately 110 professionals, who are currently based in India, will join Capgemini’s Business Process
Outsourcing (“BPO”) Excellence Delivery Centre in Chennai, India starting October 1, 2007. This brings the number of dedicated BPO experts in India to nearly 1,500.
EDS announced the launch of a world-first payment card utility in Australia to make it easier for financial institutions to modernise and manage card services in an increasingly competitive market. The Regional Cards Utility gives banks and other credit providers access to the latest technology and business systems under an innovative shared service model.
Wipro Technologies has won a five-year, $130 million contract from British utility Thames Water.Wipro will provide integrated IT services encompassing applications support, maintenance and infrastructure management services. Thames Water is an old Wipro client but this is the largest single deal that the company has gotten from the British utility. Wipro has over 1,500 people energy and utility practice with capability in consulting, package implementation, systems integration, application development and maintenance, testing services, business process outsourcing and infrastructure support services. Thames Water is responsible for water supply and waste water treatment in parts of London, Surrey, Wiltshire and Thames Valley in the UK.
EDS announced the successful implementation of a new flight planning and slot management system for Brussels Airlines, a leading Belgian airline. In March 2007, SN Brussels Airlines and Virgin Express merged to become Brussels Airlines. Immediately thereafter they decided to consolidate flight operations and migrate the combined fleet onto one single flight planning and slot management system. After a thorough market evaluation and benchmark comparisons, Brussels Airlines selected EDS Flight Planning with the slot management module as their future flight planning system.
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September 19, 2007
Top Stories
EDS WINS $800 MILLION HOMELAND SECURITY CONTRACT...The Associated Press reports that Electronic Data Systems Corp. won an $800 million contract from the Homeland Security Department to run a major data center. No other public announcement was made by either the company or the department. The terms of the deal include a 10-month base term with five one-year options, plus an additional two-year option to extend the length of the contract.
WIPRO COMPLETES INFOCROSSING DEAL...Wipro Limited announced the completion of the tender offer by its indirect wholly-owned subsidiary, Roxy Acquisition Corp., for all outstanding shares of Infocrossing, Inc. at a price of $18.70 per share in cash. The tender offer expired at 11:59 p.m., New York City time, on Monday, September 17, 2007.
NOMINATIONS OPEN FOR OUTSOURCING EXCELLENCE AWARDS...Nominations are being accepted for the annual Outsourcing Excellence Awards, sponsored by Outsourcing Center, Everest Group, and Forbes magazine. Known as the “Oscars” of Outsourcing, the program was founded in 1997 and honors the most distinguished outsourcing relationships worldwide. 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.
To view award guidelines and to obtain a nomination form, please visit www.outsourcing-awards.com. Nominations will be accepted through October 1, 2007. The fee for submitting a nomination is $1,000.
PAYCHEX ACQUIRES HAWTHORNE BENEFITS...Paychex, Inc., a leading provider of payroll and human resource services, announced the acquisition of Hawthorne Benefit Technologies, Inc. and BeneTrac, its online employee benefits management and administration system. Hawthorne, founded in 1999, is based in San Diego, California and now operates as Paychex Benefit Technologies, Inc., a wholly-owned subsidiary of Paychex. BeneTrac’s Web-based benefits enrollment and administration technology provides real-time, 24-hour access for HR administrators and employees.
COGNIZANT DECLARES STOCK SPLIT...Cognizant Technology Solutions Corporation has declared a two-for-one stock split on its capital stock in the form of a stock dividend. Stockholders of record as of October 1, 2007 will be entitled to one additional share of common stock for each share held on the record date. The stock dividend distribution is expected to occur on or about October 16, 2007, and it is anticipated that the company's Class A Common Stock will begin trading on a post-split basis the business day following the distribution date.
ACS NAMES KYSER TO CFO...Affiliated Computer Services, Inc. today announced the promotion of Executive Vice President Kevin Kyser to Chief Financial Officer. In his new capacity, Kyser will lead ACS' finance organization, including the corporate controllership, treasury, tax, investor relations, audit, finance operations and strategic planning and analysis functions for the company's worldwide operations. Since joining ACS in 1997, Kyser has served as Corporate Controller, directed the company's investor relations group, served as CFO of the company's Commercial Solutions Group and most recently served as Executive Vice President of Finance and Accounting. He is a Certified Public Accountant in the state of Texas.
New Business
Capgemini has signed a five-year agreement with NXP Semiconductors, the independent semiconductor company founded by Philips, to provide end-to-end Finance and Accounting (“F&A”) services, including Procure-to-Pay and Record-to-Report. Under the terms of the agreement, which expands the existing long-term relationship between the two companies, approximately 110 professionals, who are currently based in India, will join Capgemini’s Business Process Outsourcing (“BPO”) Excellence Delivery Centre in Chennai, India starting October 1, 2007.
Computer Sciences Corporation has signed a three-year, $25 million (AUD$30 million) information technology (IT) services contract with international oil and gas group Woodside, Australia’s largest publicly traded oil and gas exploration and production company...CSC has also signed a 10-year, $20 million business process outsourcing (BPO) contract with Wilton Re to support the privately owned life reinsurance group’s growth strategy of acquiring large blocks of insurance policies.
EDS was awarded an information technology (IT) services contract to provide the EDS Flight Planning solution for Mexicana de Aviación (Mexicana Airlines), a leading air transportation company between Mexico and the United States. Financial details were not disclosed.
International News
Siemens IT Solutions and Services has received a major order from the Turkish Ministry of Finance Revenue Administration. Siemens will upgrade the existing IT infrastructure of more than 1,000 tax offices and property directorates and connect them via a countrywide IT system. The administration aims to improve collaboration between the different offices, government institutions and banks in order to better control tax issues. The system will also lead to improved and faster services for the Turkish taxpayers. The contract has a total value of some73 million euros and is the largest ever IT contract in the Turkish public sector.
Stellar, a leading global call center and business process outsourcing provider, announced its entry into the UK outsourcing market after the re-branding of Excell Contact Centres (a prominent UK call centre outsourcing provider based in Scotland) to Stellar UK. Stellar UK operates two call centres in Scotland that employ over 500 staff in Irvine, Ayrshire and Paisley, Renfrewshire. Specialising in call centre outsourcing, Stellar UK will continue to expand their operations to cater for growth in the UK outsourcing market.
Tata Consultancy Services, a leading IT services, business solutions and outsourcing organization, has executed a mission-critical engagement for the Labour Market Regulatory Authority (LMRA), an autonomous organization established by Kingdom of Bahrain to restructure Bahrain's labour market regulations through strategic reforms.
CGI Group Inc. has signed a seven-year information technology (IT) outsourcing contract with Bombardier Recreational Products Inc. (BRP). Under the agreement, CGI will manage BRP's SAP infrastructure support, business intelligence applications, Web sites, as well as the e-commerce application that allows retailers and distributors to do business with BRP around the world. The contract also includes the support of this application.
Genpact, which manages business processes for companies around the world, has opened its new Latin America headquarters facility in Juárez, Mexico. The 125,000 sq. ft. (11,612 sq. meter)custom-built facility in north Juárez is part of an ongoing expansion of Genpact’s operations in Mexico.
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September 12, 2007
Top Stories
ACCENTURE SIGNS $185 MILLION DEAL WITH MICROSOFT...Accenture is providing Microsoft Corp. with a range of finance and accounting (F&A) and procurement services under a seven-year, $185 million business process outsourcing (BPO) agreement. The agreement outsources some of Microsoft’s transactional finance activities and consolidates services currently provided by other vendors. The finance and accounting services Accenture provides cover accounts payable, travel and expense, and record-to-report functions, including fixed assets, general ledger, treasury and statutory reporting. The procurement services Accenture provides include category management and requisition-to-purchase-order processing.
WNS ANNOUNCES EXECUTIVE APPOINTMENTS...WNS (Holdings) Limited announced three senior executive appointments that it says will drive the continued growth and development of the company, including the promotion of Anup Gupta to Group Chief Operating Officer responsible for managing the operating performance of the company; the appointment of Eric Selvadurai as the Managing Director and leader of WNS’s European business; and Sulakshana Patankar as the CEO of the newly carved out Finance and Accounting Business Unit. WNS also announced that Zubin Dubash, who has served as Group Chief Financial Officer for the past three years, will be leaving WNS on December 1, 2007, to pursue a career in private equity.
ACCENTURE SIGNS 5-YEAR F&A DEAL WITH BT...Accenture is providing BT with finance and accounting (F&A) services under a five-and-a-half-year business process outsourcing (BPO) contract. Financial details of the agreement were not disclosed. Under the terms of the contract, Accenture is providing services related to management reporting, financial planning and analysis, month-end close activities and budgeting/forecasting to BT’s operations, initially focused in the UK. The services are being delivered through Accenture’s Global Delivery Network using delivery centers in India.
HEWITT ASSOCIATES LAUNCHES DC CONSULTING PRACTICE...Hewitt Associates has formally established a U.S. Defined Contribution (DC) Consulting practice. The newly-formed practice will be composed of a group of experts specifically dedicated to providing companies with a full spectrum of defined contribution services and solutions, including strategy and plan design, cost and risk management, investment consulting, behavioral finance, administration, communication, and legal and compliance consulting.
ADP APPOINTS TWO NEW DIRECTORS...The board of directors of Automatic Data Processing, Inc. has elected Eric C. Fast, 57, and Gregory L. Summe, 50, as directors of the company. Fast is the President and Chief Executive Officer of Crane Co. Summe is the Chairman, Chief Executive Officer and President of PerkinElmer, Inc. These elections increase the size of the company’s board to 11 directors.
HEWITT EXTENDS TENDER OFFER...Hewitt Associates, Inc. has extended the expiration date of its offer to purchase up to 15,625,000 shares of its outstanding Class A common stock under its previously announced modified “Dutch Auction” tender offer. The tender offer, which was originally due to expire at 12:00 midnight, New York City time, on Wednesday, September 5, 2007, is now set to expire at 12:00 midnight, New York City time, on Wednesday, September 12, 2007, unless further extended.
New Business
EDS has been awarded a three-year contract to develop the Kentucky Comprehensive Tax System that will automate the Commonwealth's tax administration and collections functions for the Commonwealth of Kentucky's Department of Revenue, Finance and Administration Cabinet. The contract is valued at $33.2 million if two additional option years are exercised.
Kinecta Federal Credit Union has signed a multi-year agreement with Online Resources Corporation, a leading provider of Web-based financial services, for electronic bill payment and other online services. Kinecta, based in Southern California, is the 13th largest credit union in the country, with over $4 billion in assets and more than 200,000 members.
Affiliated Computer Services, Inc. announced contract extensions with the Hawaii Department of Human Services' Med-QUEST Division to continue providing fiscal agent and pharmacy benefits management (PBM) services to the state's Medicaid program. The six-month extensions of the two contracts are valued at a combined $6.4 million. ACS has provided fiscal agent and PBM services to Hawaii's Medicaid program since 2001.
International News
IBM India announced that its Global Delivery Center (GDC) has been appraised at the highest rating -- Level 5 -- for the version 1.2 of Capability Maturity Model Integration (CMMI) framework by the Carnegie Mellon University's Software Engineering Institute (SEI). IBM India GDC is one of the first few organizations in the world of its size and operational complexity to have achieved this impeccable credential.
Everest Research Institute Survey: Captives Are Meeting Cost and Service Expectations
Results from a new Everest Research Institute survey reveal that more than 85 percent of the key executives surveyed believe that company-owned offshoring operations in India, known as “captives,” are delivering on cost savings and service expectations despite contrary opinions. The Institute will host a Webinar on October 11 at 8 a.m. CDT, to present survey findings and insights.
“Performance is not dependant on the size of the parent company’s operations or industry. Most captives are doing well, despite a few instances, and this survey proves the viability of this sourcing decision,” said Nihal George, Research Director, Everest Research Institute. “We also noted that early stage captives are more challenged in meeting parent company’s service level expectations, but we expect them to overcome these obstacles in the long run.”
The survey, entitled Captive Value Diagnostic Study Market Update, polled 102 key executives from global companies, representing both parent and captive stakeholders, with sophisticated captive operations in India across a wide-range of industry verticals from hi-tech to banking to telecom. The companies also had varying locations, scales of operations and functions undertaken.
“The majority of captives being able to meet performance criteria is an incremental step for the future of captives’ business models,” said Nikhil Rajpal, Vice President of Global Sourcing for Everest Research Institute. “Our research indicates they now have an opportunity to elevate their roles and provide additional value for the company. Parent stakeholders are giving captives support to step up their efforts and deliver beyond cost savings, which creates a multitude of growth opportunities.”
In addition to strong captive performance and confidence from parent executives that they can deliver more value, the survey highlighted insights on the areas captives should focus future delivery on, including:
• Parent stakeholders’ desire to enhance capabilities and attain added value, but first captives must master incremental improvements such as productivity.
• Parent executives do not consider adding scale as a top priority for captives in order to enhance their value.
• Twelve percent of executives are willing to sacrifice short-term cost savings in favor of enhanced value down the line.
The survey noted several key capabilities required for captives’ success, such as the need to invest in multiple areas in order to become more integrated and provide additional value. Areas which stood out among parent executives include a need to focus on leadership skills and a need to build or enhance structured relationship management mechanisms.
“Parent stakeholders want leaders with strong influencing skills to eventually lead key initiatives, and truly enhance their significance within the overall organization,” said Rajpal. “To accomplish this, parent stakeholders must work with captives to establish value priorities and to evolve their capabilities, thereby reducing existing disconnects. Captives must view themselves as a partner in creating strategic value, and as a result, build depth in functional expertise and leadership.”
Following the Captive survey, Everest Research Institute will release Comparison of Outsourced and Captive Solutions for Capturing Value from Offshoring in October that will examine the relative cost of captives and third-party outsourcers plus additional sources of value.
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.
To read more about the survey results, an extract of the report is available at www.outsourcing-center.com. To purchase a copy of the report or get information on other research services, please e-mail info@everestresearchinstitute.com or call +1-214-451-3110.
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September 05, 2007
Top Stories
THOMSON ACQUIRES DELOITTE PROPERTY TAX BUSINESS...The Thomson Corporation, a leading provider of information solutions to business and professional customers worldwide, has signed a definitive agreement to acquire the Deloitte Tax LLP Property Tax Services business (PTS). PTS is a national provider of property tax compliance outsourcing and consulting services, such as real estate appeals and complex property valuation, and employs an expansive network of more than 420 professionals.
CSC WINS $820 MILLION AIR FORCE CONTRACT...Computer Sciences Corporation has been awarded a contract by the U. S. Air Force Space Command to provide technical services at the Air Force’s Eastern Range, headquartered at Patrick Air Force Base, Fla. CSC estimates the value of the agreement, which has a 10-month base period and nine one-year options, to be $820 million if all options are exercised.
TECHTEAM GOVERNMENT UNIT ACQUIRES RL PHILLIPS...TechTeam Government Solutions, Inc has acquired RL Phillips, Inc. of Carlsbad, California. The transaction closed on August 31, 2007. RL Phillips provides information technology, network engineering and information assurance services to both government and commercial entities and had annual review of approximately $5.3 million for its latest fiscal year.
FREEBORDERS EXPANDS IN CHINA...Freeborders Incorporated has expanded operations in China by opening a new office in Guangzhou. Freeborders already has a state of the art technology center in Shenzhen, which has provided IT outsourcing services to Fortune 1000 US and European companies for nearly a decade.
New Business
Belk, Inc., the largest privately owned department store company in the United States, has renewed its existing outsourcing contract with IBM as part of a seven-year, $98 million agreement. The extension strengthens a 60-year relationship between the two companies and will help enhance service delivery in support of Belk's business growth model.
Computer Sciences Corporation has won an information technology (IT) services contract to provide systems engineering and management and administration support to the U.S. Navy Space and Naval Warfare System Center (SPAWAR) Charleston in Pensacola, Fla. CSC estimates the value of the contract, which has a one-year base period and four one-year options, to be $43 million if all options are exercised.
Affiliated Computer Services, Inc. has been awarded a contract renewal by the City of Boston to provide full-service parking ticket collections, booting and towing, and fleet management services. ACS has served the city since 1981. The contract has a length of up to three years and a total value of $19 million, including two one-year renewal options, and was reflected in ACS' fourth quarter fiscal year 2007 results.
International News
BT has extended its outsourcing contract with Xansa until March 2014. Xansa will continue to manage BT's UK operations for finance and accounting (F&A) transaction processing, ledger and payroll services leveraging a combination of Xansa's onshore and offshore capabilities in shared service centers in UK and India. Building on a 20 year relationship, this extension worth £128 million over six years to Xansa, covers F&A processing, accounts payable, cash, treasury, payroll, ledger and reporting services.
Accenture is helping United Utilities, which manages and operates electricity distribution and wastewater networks in northwest England, improve its customer service performance through a nine-year business process outsourcing agreement. Accenture is responsible for delivering all services across back-office functions related to income, debt recovery and billing operations.
Convergys Corporation announced a new agreement to provide consulting services to Telecom Egypt, the largest fixed line provider in the Middle East and Africa serving over 11 million subscribers. As part of the new agreement, Convergys is providing its industry expertise to implement a Business Process Re-engineering project to enhance Telecom Egypt’s billing operations. Convergys will re-engineer all billing processes to align them with Telecom Egypt’s new billing platform.
Tata Consultancy Services (TCS) and Roche, one of the world's leading research-focused healthcare groups in the fields of pharmaceuticals and diagnostics
headquartered in Basel, Switzerland, have announced a partnership to advance Roche's Global Capacity Building Initiative (GCBI).
Anglo-Dutch IT services group LogicaCMG plc has signed a declaration of intent with Royal KPN NV to take over responsibility for all human resources and payroll activities for all KPN workers in the Netherlands. Financial details were not disclosed. The company said roughly 60 KPN employees will be transferred to LogicaCMG.
Ericsson and Finnish operator Elisa, the largest provider of enterprise communication services in Finland, have signed an agreement for managed services under which Ericsson will manage and develop Elisa's multivendor enterprise back-office environment. Ericsson will be responsible for remote maintenance and change management for traditional and IP-based PBXs used by Elisa's enterprise customers. In addition, the contract covers part of the field service in the Uusimaa region of Finland.
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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.
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.
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.
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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.
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
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.
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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.
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.
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.
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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).
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.
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.
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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.
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.
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.
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.
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July 25, 2007
Top Stories
CSC WINS $597 MILLION NASA SUPPORT CONTRACT...Computer Sciences Corporation has won a contract to provide supercomputing support services to the National Aeronautics and Space Administration (NASA). CSC estimates the value of the contract, which has a two-year base period and eight one-year options, to be $597 million if all options are exercised.
ACCENTURE ACQUIRES GEORGE GROUP...Accenture has agreed to acquire George Group, a privately held consulting firm specializing in helping companies and governments enhance their performance through strategic process improvements, accelerated innovation and streamlined operations. The acquisition will expand and enhance Accenture’s ability to help clients become high-performance businesses through the addition of George Group’s specialized expertise in process improvement techniques. Terms of the agreement were not disclosed.
CONVERGYS REPORTS SECOND QUARTER RESULTS...Convergys Corporation announced earnings of $0.28 per diluted share--equal to same period last year--for the second quarter of 2007. Revenues of $707.0 million were up 2 percent compared to the second quarter of 2006 reflecting growth from the Customer Care and Employee Care segments. Operating income was $58.1 million in the second quarter compared with $62.8 million in the same period last year. Net income was $38.8 million.
New Business
Leading Peruvian private bank Interbank has selected IBM to provide services that will increase its automatic teller machine network by roughly 38 percent. Under the $4.26 million agreement signed in May, IBM will install, configure and maintain 265 new ATMs. Interbank owns the largest ATM network in Peru, with IBM as its service provider since 2002.
EDS announced an agreement with Dean Health Insurance, one of the largest and most diversified managed care organizations in the Midwest, to implement EDS' MetaVance Administration and Finance System. This
agreement will allow Dean Health Insurance to improve productivity and efficiency, enable growth and ultimately improve service to its 275,000 members. Financial details were not disclosed.
Affiliated Computer Services, Inc. will provide defined benefit and health and welfare administration for Ameren Corporation, one of the nation's largest investor-owned electric and gas utilities. Under the terms of the five-year agreement, ACS will administer Ameren's pension and health plans for 24,000 participating employees and retirees. ACS will employ its proprietary benefit outsourcing technology to manage Ameren's defined benefit and health plans.
The Bank of Beirut and the Arab Countries SAL (BBAC), a leading commercial bank in Lebanon, has selected IBM software, hardware and industry expertise to create a business intelligence infrastructure designed to help the bank manage risk and boost profitability. This engagement represents IBM's first major Information on Demand project in Lebanon.
Unisys Corporation has received an extension to its IT outsourcing services contract with the City of Chicago. The extension has an estimated value of $72 million for the initial six-year term and an additional $12 million if the city exercises a one-year option. Under the extension, Unisys will expand the range of IT outsourcing services it provides the city.
European News
Infosys Technologies Ltd has signed a multi-million dollar outsourcing contract with Royal Philips Electronics’ of the Netherlands. As part of the agreement, Infosys BPO will 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.
Rabobank, one of the largest financial services providers in The Netherlands, has extended its business process outsourcing contract with Unisys Payment Services and Solutions (UPSS). The extension, signed in June 2007, covers all paper-related payment transactions for two additional years through December 31, 2012.
ExcellerateHRO has signed a contract to continue providing Benefits Administration Services for TOTAL in the UK, one of the largest integrated oil and gas companies in the UK and part of the fourth-largest energy company in the world, TOTAL SA. Under the 48-month contract extension, ExcellerateHRO will provide administration services for approximately 15,000 members of the TOTAL pension plan in the United Kingdom.
Maturing Finance & Accounting Outsourcing Market
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, entitled “Global Sourcing in Finance & Accounting Outsourcing,” reveals that while labor arbitrage and productivity improvements can potentially save buyers between 30 and 40 percent on their direct-costs, these are one-time benefits which typically stagnate as the deal progresses. As such, buyers are seeking contracts with continuous improvement parameters and innovative sourcing models such as a combination of global sourcing, technology enhancements, and process improvements for optimal service delivery and ongoing cost savings.
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.
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July 18, 2007
Top Stories
IBM SIGNS $1.4 BILLION CONTRACT WITH ASTRAZENECA...IBM has signed a $1.4 billion, seven-year global strategic outsourcing agreement with AstraZeneca, one of the world's largest pharmaceutical companies. The agreement renews and expands on the scope of an existing contract and covers the provision of IT infrastructure services to 60 countries. In the terms of the agreement, IBM will provide a single global technical infrastructure managing IT services for AstraZeneca across its global organisation.
CSC NAMES PRESIDENT, WORLD SOURCING SERVICES...Computer Sciences Corporation has named Mary Jo Morris, 52, to the position of President, World Sourcing Services. This new organization is responsible for proactively extending CSC's reach into new geographic markets to support global business channels and expand the company's World Sourcing footprint. Offshore and near-shore delivery centers will be managed globally so that customers receive the benefits of global leverage, a consistent set of delivery processes and the mix of near-shore and offshore resources appropriate to their needs.
MASTEK SUBSIDIARY ACQUIRES VECTOR INSURANCE SERVICES...MajescoMastek, the U.S. subsidiary of Mastek, a leading IT solutions player with global operations providing new technology and IP-led enterprise solutions to insurance, government, and financial services organizations worldwide, today announced the acquisition of Vector Insurance Services LLC (Vector), a technology solutions provider and third-party administrator that focuses on the North American life and annuity insurance industry. Vector provides policy acquisition, administration and processing solutions to customers in the North American life insurance industry.
PETER BENDOR-SAMUEL NAMED E&Y ENTREPRENEUR OF THE YEAR...Everest Group CEO Peter Bendor-Samuel has been named by Ernst & Young LLP as one of the winners of the Ernst & Young Entrepreneur Of The Year 2007 awards in Southwest Area North (North Texas/Arkansas/ Oklahoma). Bendor-Samuel was one of 10 award winners selected by an independent panel of judges composed of area leaders from business, academic and civic organizations. He was named winner in the Technical Services category.
New Business
Unisys Corporation has been selected by the U.S. Cargo Sales Joint Venture LLC (USJV) to provide a broad range of IT outsourcing support services for the cargo organization. USJV is a joint venture between Delta Airlines, Air France, and Korean Air, offering cargo-related services in the U.S. Unisys will provide USJV with outsourced data center, security, network and desktop management services over a three-year period.
The West Virginia Department of Health and Human Resources, Bureau for Medical Services (BMS) – a pioneer in Medicaid reform and driving policy to manage its management information systems – has awarded Unisys Corporation a contract to continue to provide Medicaid claims services.
Quintiles Transnational Corp., has selected Kenexa to provide outsourced staffing solutions for its Japan location. Quintiles Japan, with headquarters in Tokyo, is a leading provider of development, commercial and financial solutions to pharmaceutical and biotech companies operating in Japan, the world's second-largest pharmaceutical market. Under the terms of the three-year agreement, Quintiles Japan will use Kenexa's employment process outsourcing (EPO) solutions to manage its clinical staffing operations in Japan.
Comanche County Memorial Hospital (CCMH), located in Lawton, Okla., recently selected a wide range of McKesson technology and services as part of a $13 million agreement to enhance medication safety and create a “paperless” electronic health record (EHR) that spans both inpatient and outpatient settings across the community. The goal is to create a single, secure EHR flowing across hospital departments and local physician offices enabling quicker access to complete and consistent patient information, including test results, encounter notes and diagnostic images in support of enhanced patient safety and clinical excellence.
European News
Barry Callebaut, the world's leading manufacturer of high-quality cocoa and chocolate products, and The Hershey Company, North America's leading manufacturer of high-quality chocolate and confectionery products,
have entered into agreements for a strategic
supply and innovation partnership. Barry Callebaut will start liquid chocolate and finished product deliveries to Hershey within the next few months.
Quintiq, a leading provider of Advanced Planning and Scheduling (APS) solutions and Capgemini, one of the world's largest providers of Consulting, Technology and Outsourcing services,announced a new global approach for APS. This expands the longstanding cooperation between the two groups, enabling them to deliver enhanced capabilities to customer companies worldwide and opening new opportunities for Capgemini and Quintiq.
KPN and Atos Origin, an international IT services company, have redefined their relationship in The Netherlands in order to reflect the changes in KPN’s strategy. Atos Origin will continue to deliver most of the current services to KPN and the contracts will be extended with a minimum duration of three years. Atos Origin and KPN have an extensive outsourcing and IT services relationship dating back to 2001.
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July 12, 2007
Top Stories
UNITED GROUP ACQUIRES UNICCO...UNICCO Service Company, one of the nation's largest integrated facilities management (FM) companies, has agreed to be acquired by United Group Limited for $408 million, payable in cash and United Group shares. headquartered in Sydney, Australia, United Group Limited is a diversified services and infrastructure company partnering with blue chip and government customers in six core sectors: property, rail, water, power,transport and resources. The company has operations throughout Australia, United States, Asia, Middle East and parts of Europe and is listed on the Australian Stock Exchange with a market capitalization of approximately US$2.0 billion.
CONVERGYS WINS STARBUCKS DEAL...Convergys Corporation announced today a multi-year contract with Starbucks Coffee Company to provide global human resources business process services, beginning with Starbucks North American operations. Starbucks is the world’s leading retailer, roaster, and brand of specialty coffee with more than 13,500 stores in 40 countries employing more than 145,000 partners (employees). Under terms of the contract, Convergys will provide human resource (HR) administration and payroll services for Starbucks partners in the United States and Canada, along with benefits services for Starbucks partners in Canada.
PEROT SYSTEMS NAMES SENIOR LEADER...Anurag Jain will lead the Perot Systems Corporation's Consulting and Applications Solutions Group. Jain will continue to report directly to Peter Altabef, president and CEO, both as leader of the Consulting and Applications Solutions Group and in his existing capacity as leader of the Insurance and Business Process Solutions Group. He has more than 15 years of management, operations, consulting and business start-up experience and has been a senior leader of Perot Systems since 2003, when the company acquired his Healthcare-focused India-based technology business.
VMC NAMES COO...Technology services outsourcing and project management leader VMC, a subsidiary of Volt Information Sciences, Inc., has appointed Robert E. Wise as its new Chief Operating Officer. In this position, Wise will spearhead VMC’s operations across North America, Europe and Asia. Concurrently, VMC announced the promotion of Glenn Hoogerwerf into the role of Executive Vice President of VMC.
HCL OPENS DEVELOPMENT CENTER WITH KONICA MINOLTA...HCL Technologies Ltd announced the opening of an Offshore Development Centre in Chennai with Konica Minolta Group (KM), a global corporation in the field of imaging from input to output, to provide software services for KM’s Multi Function Peripherals (MFPs), printers and medical equipment business lines. The software services provided by HCL will support the Japanese language in order to communicate accurately with KM’s researchers. The contract is for three years and extendable thereafter every year.
TRINET ACQUIRES JPA...TriNet Group, Inc., a nationwide provider of human resource (HR) outsourcing services for small and medium-sized companies, has acquired John Parry & Alexander (JPA), an HR outsourcing and consulting services company based in Walnut Creek, California. All executives and employees from JPA have become full-time team members of TriNet. Specific terms of the transaction are not being disclosed.
New Business
IDEA Cellular Ltd. (IDEA), a leading India-based GSM mobile services provider and an Aditya Birla Group company, and IBM announced a ten-year, $53 million contract to deploy, integrate, innovate and transform IDEA's interactive voice response (IVR) self-service infrastructure and processes. The consulting services agreement is designed on an innovative risk-and-reward model based on price per minute. The agreement was signed in June 2007 and is in addition to the ten-year IT outsourcing agreement between IDEA and IBM, valued around $600 million to $800 million signed earlier this year.
Affiliated Computer Services, Inc. announced a contract amendment with the Montana Department of Public Health and Human Services (DPHHS) to provide managed care enrollment broker services for the state's Medicaid Management Information System (MMIS) contract. ACS has served the state since 1985, making it the longest-running Medicaid full fiscal agent account in the company's history.
European News
Computer Sciences Corporation announced WorldBridge, a new service that will provide UK visa applicants with comprehensive visa and immigration information and assistance. WorldBridge will establish Visa Application Centers (VACs) in 15 countries throughout Europe, the Americas and North Africa & Middle East, and will provide information services through the Internet, e-mail and multilingual call centers to an additional 87 countries. Responsibility for deciding the outcome of each visa application and the issuing of visas will remain with the British Diplomatic Mission.
Calyon, the Crédit Agricole group's corporate and investment banking subsidiary, has signed two three-year consulting, systems integration and application outsourcing agreements with Accenture and Capco. The agreements are part of Calyon’s IT investment program, which is designed to support the accelerated growth of the bank’s capital markets business. The agreements make Accenture and Capco strategic partners of Calyon in the area of capital markets technology support. The new relationships aim to support the bank’s IT transformation program and provide Calyon with access to Accenture’s and Capco’s specialized onshore and offshore IT development resources.
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July 05, 2007
Top Stories
CSC COMPLETES COVANSYS ACQUISITION...Computer Sciences Corporation has completed its acquisition of Covansys for $34.00 per share in an all-cash transaction. The announcement follows approval of the acquisition by the holders of a majority of the outstanding Covansys shares at a shareholder meeting June 27. Covansys will operate as a separate business unit of CSC and will now be known as Covansys, a CSC Company. Raj Vattikuti will continue to lead this new business unit and will report directly to CSC President and Chief Executive Officer Michael W. Laphen.
ACCENTURE REPORTS STRONG THIRD QUARTER...Accenture reported strong financial results for the third quarter of fiscal 2007, ended May 31, with record net revenues of $5.08 billion, a year-over-year increase of 15 percent in U.S. dollars and 9 percent in local currency. Consulting and outsourcing revenues both grew by double digits in U.S. dollars for the third consecutive quarter and were also quarterly records. GAAP diluted earnings per share were $0.54, compared with $0.56 in the third quarter of fiscal 2006. EPS of $0.54 represent an increase of 8 percent over adjusted EPS of $0.50 in the third quarter last year.
EDS REVAMPS $310 MILLION DEAL WITH AUSTRALIAN BANK...EDS has strengthened its relationship with the Commonwealth Bank of Australia after significantly revamping a $US310 million service-based contract to deliver desktop and other end-user computing services for the next five years and is focused on significantly enhancing business outcomes through improved service delivery. The deal follows last year's $US350 million signing of a new master IT&T Agreement involving Enterprise Processing Services (EPS) for mainframe, midrange and data storage until 2012.
UNISYS TEAMS WITH BT...Unisys Corporation has signed an agreement with BT to provide network monitoring and management services as part of outsourcing engagements for Unisys clients worldwide. The agreement makes BT network monitoring and management services a key part of Unisys IT outsourcing solutions. Unisys will implement these BT network services in its portfolio of managed network solutions for its global client base. This new arrangement is intended to afford each company new business development opportunities.
EDS COMPLETES ACQUISITION OF RELQ SOFTWARE...EDS has completed the acquisition of RelQ Software Private Limited, a Bangalore, India-based software testing company. RelQ will be fully integrated into EDS' global testing organization. All of RelQ's more than 700 employees in India, the United Kingdom, the United States and France are expected to become part of EDS' global testing organization. Financial terms of the transaction were not disclosed.
MOTIF NAMES FORMER MCKINSEY EXEC TO BOARD...Motif Inc has named former McKinsey & Co senior executive Robert Kaplan to its board of directors. Kaplan, who has been a senior executive and management consultant for the past 30 years, will now serve as an advisory member to the board of Motif, which provides BPO services to Fortune 500 companies, and has operations in Morristown at NJ in USA, Ahmedabad in India and Manila in Philippines. Kaplan spent ten years with McKinsey & Company as senior partner, leading their information technology and systems practice. Prior to that, he was managing partner at the Boston Consulting Group where he worked for eleven years. He has also worked with KPMG as a systems consultant.
OPI NAMES MD...Outsource Partners International, Inc. has appointed Kevin Dougherty, as Managing Director. Dougherty will oversee relationship management and service delivery at select clients throughout North America. Dougherty brings to OPI twenty-five years of experience providing consulting and professional services at global companies. He will be based in OPI’s Dulles, Virginia office and will report directly to Clarence T. Schmitz, OPI’s Chairman & CEO.
New Business
Computer Sciences Corporation has signed an information technology (IT) outsourcing contract extension with General Dynamics Armament and Technical Products, a business unit of General Dynamics. The five-year agreement is valued at $118 million. Under the terms of the contract, CSC will continue providing a full range of IT services, including help desk, desktop and network support; mainframe and midrange services; and applications development and maintenance.
Capgemini has been chosen by Sempra Energy’s San Diego Gas & Electric (SDG&E) utility company to provide implementation and integration services for its Smart Meter project in a program recently approved by the California Public Utilities Commission (CPUC). SDG&E serves approximately 3.4 million consumers through 1.4 million electric meters and 900,000 gas meters in Southern California.
Computer Sciences Corporation has signed a contract to provide information technology (IT) services to the University of Pennsylvania Health System (UPHS). CSC estimates the value of the five-year contract to be $67 million. Under the terms of the agreement, CSC will provide a full scope of IT infrastructure services across UPHS facilities, including desktop, help desk, systems security and network support.
European News
IBM and Gruppo Monte Paschi Siena announced a 260 million euro IT Services agreement for IBM to help cut costs and improve efficiencies for the Italian bank's Operational Consortium. The new agreement is an extension to an existing 420 million euro contract signed in 2003, and is expected to bring approximately 48 million euro in cost savings over the new 6-year term.
LOOMING STAFFING CRISIS IN UK ACCOUNTANCY...Staffing problems in accountancy firms is a major issue the industry seems to be ignoring. While most practices are just about managing to keep their heads above water, this will not remain the case for much longer if urgent steps are not taken now, according to Simon Crompton of MYOB, the global business solutions provider:
“The inability to get enough bums on seats is a major business issue for accountancy practices. It can jeopardise work standards, demoralise team members and seriously impede an accountancy practice’s ability to grow. It is for these reasons that of all of the challenges facing the profession today, the ability to recruit and retain staff has to rank as a top priority. So I am amazed that the profession does not seem prepared to tackle the issue head on.
“I am seeing first hand how accountancy practices are struggling to recruit enough graduates and how this is forcing up wage inflation at that level. At the same time, holding onto people and offering them dynamic career progression also seems to be becoming far harder – a phenomenon that is not helped by the average age of a practice partner rising to 57. As accountants determine strategies to deal with these recruitment and retention issues, so other resource-saving activities need to be considered.
“It is a recognised fact that accountancy practices are increasingly looking to grow their business through offering added value services. By definition, this means that the core bread and butter work is reaching ‘commodity’ status where it is neither a differentiator nor very profitable. As such it would seem to me that accountants need to find strategies to free up the valuable staff resourcing to concentrate on the value-add. I would suggest it is therefore time for accountancy practices to seriously consider the role that outsourcing of non-critical work could bring.”
HRO Buyers Focused on Value, Technology, Not Cost Savings, Everest Research Institute Reports
To gain value creation and access to technology, a growing majority of Human Resources Outsourcing (HRO) buyers are willing to forego cost savings and sign outsourcing deals that favor the ‘transfer-transform model’ in which a company’s processes and technologies are provided by the supplier, according to a new study from the Everest Research Institute.
The HRO buyer survey and analysis, Human Resources Outsourcing Market Update: HRO Benchmarks, also noted transactions since 2004 have rapidly shifted from highly customized solution contracts to more configured or “off the shelf” solutions to leverage suppliers’ economies of scale. Thus, buyers with contracts coming up for renewal in the next few years can expect to receive price improvements over their original contracts.
For additional information and an extract of the HRO Market Update/Benchmarks study, please visit www.outsourcing-center.com. You may also call 214-451-3110 to schedule a personal briefing appointment.
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June 20, 2007
Top Stories
ACCENTURE SIGNS MULTI-YEAR DEAL WITH WASHINGTON GAS LIGHT...Washington Gas Light Co. and Accenture have signed a multi-year agreement for Accenture to provide business process outsourcing, and service and technology enhancements to Washington Gas. Washington Gas expects to pay approximately $350 million for a combination of capital expenditures and services over the 10-year business process outsourcing agreement, which will help the utility enhance its technology, business processes and workforce performance to improve customer service. The company also has agreed to pay an additional $16.4 million for the purchase of IT equipment and software from Proquire, an Accenture affiliate.
CAPGEMINI NAMES NORTH AMERICA BPO LEADER...Capgemini has named Deputy Global BPO Leader David Poole to lead the Capgemini Business Processing Outsourcing (BPO) North America organization. In assuming the additional role of North American Leader, Poole will be responsible for driving, building, and growing BPO opportunities in existing and new North American markets. Poole will report directly to Hubert Giraud and David Bonner, Head of Capgemini Americas Outsourcing Business Unit. He also maintains his current role as Deputy Global BPO leader.
EDS TOPS BLACK BOOK RANKINGS...EDS has earned the number one position on the “Top 50 Best Managed Global Outsourcing Vendors” list compiled by the Brown-Wilson Group for The Black Book of Outsourcing from Wiley Publishers. EDS was also listed as the leading global information technology outsourcing (ITO) vendor; number three for global human resources outsourcing (HRO) vendors for ExcellerateHRO, the human resources outsourcing business of EDS and Towers Perrin; and number seven for global business process outsourcing (BPO) vendors for EDS/MphasiS.
HEWITT ANNOUNCES REAL ESTATE RESTRUCTURING...As part of its previously announced restructuring program and in conjunction with an ongoing review of its real estate portfolio, Hewitt Associates, Inc. announced its intention to consolidate facilities, and in some cases, exit certain properties. The actions are expected to result in a pretax charge of between $30 million and $45 million over the next two or three quarters, beginning in the fourth quarter of fiscal 2007. Ongoing analysis and decision-making may impact the amount and timing of the charges.
New Business
Accenture has been awarded a minimum five-year contract to provide Enbridge Gas Distribution Inc., an affiliate of Enbridge Inc., with business process outsourcing (BPO) services related to billing; billing inquiry; collections; and emergency and service call center management. The services will be provided by Accenture Business Services for Utilities (ABSU), -- an Accenture industry BPO unit and one of the largest providers of outsourcing services to Utilities in North America.
Hexaware Technologies, a leading global IT services provider, has been selected by a major System Integrator in Japan to develop a core bespoke application for the IT modernization of the Postal department of a South East Asian country. The first phase of the deal worth US$18 million has been signed. This is the first core application development of its kind for the postal department or in the logistics domain for Hexaware and is the largest ever APAC deal for the company.
Rockwell Collins announced an expanded strategic relationship with HCL Technologies Ltd. Under the terms of this renewable agreement, HCL will serve as an extension of Rockwell Collins’ engineering centers, delivering high value services such as software, hardware and mechanical engineering for full product lifecycle development. Approximately 300 HCL engineers, professionals and experts will be dedicated be Rockwell Collins’ offshore design and development centers in Chennai and Bangalore.
European News
Luxoft, Russia’s largest provider of high-end IT outsourcing services to clients such as Deutsche Bank, IBM, UBS, T-Mobile and Dell, will play key thought leader and sponsorship roles at the RUSSOFT Forum 2007 event and the Better Software Conference. Luxoft will serve as a Gold level sponsor for the RUSSOFT Forum 2007, a two-day conference being held in St. Petersburg, Russia June 20–22, 2007 at the Hotel Park Inn Pribaltiyskaya.
Everest Group to Present “Developing and Managing CRO Relationships” Webinar on June 27
The pharmaceutical industry has made great strides in how it pursues, executes and manages clinical research organization (CRO) solutions over the last several years. But as the proverbial ‘functional’ vs. ‘full-service’ debate continues to rage, pharma executives want to know how to take advantage of the more advanced sourcing models deployed by other industries that are more mature in their outsourcing efforts. Todd Hintze, Principal of Everest Group, and Rich Kabrt, Engagement Director at Everest Group, will discuss developing and managing CRO relationships in a one-hour Webinar on June 27, 2007 at 10 a.m. CDT.
The Webinar will be comprised of a 45-minute presentation followed by 15 minutes of questions and answers for participants. The Webinar will take place on June 27, 2007 at 10 a.m. CDT (USA)
To register, please visit: http://www.everestgrp.com/Webinars.
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June 13, 2007
Top Stories
EVEREST RESEARCH: FAOs MUST INNOVATE TO SURVIVE...To stave off competition in today’s dynamic marketplace and capitalize on promising growth opportunities, Finance & Accounting Outsourcing (FAO) suppliers must differentiate themselves by investing in technology, focusing on vertical industries, and adapting business strategies to provide complex end-to-end Finance and Accounting (F&A) processes, according to a new, in-depth study from the Everest Research Institute. The multi-process FAO market has more than doubled since the beginning of 2005 and is now nearly a USD 2 billion market growing at over 25 percent annually. For additional information and an extract of the Global FAO Supplier Landscape study, please visit www.outsourcing-center.com. You may also call 214-451-3110 to schedule a personal briefing appointment.
CSC-LED ALLIANCE GETS $528 MILLION OPTION EXTENSION FROM NSA...Computer Sciences Corporation announced that the Eagle Alliance, a CSC-led joint venture, has received notification from the National Security Agency (NSA) of its intent to exercise the three-year option on the Groundbreaker contract. This option, with an expected value of $528 million, was included in the originally announced award value of Groundbreaker in July 2001. The option will extend Eagle Alliance's performance on the program through September 30, 2011.
KENEXA ACQUIRES RPO PIONEER STRAIGHTSOURCE...Kenexa has acquired Dallas-based StraightSource. For more than 10 years, StraightSource has been providing recruitment process outsourcing (RPO) services to leading Fortune 500 companies. StraightSource offers both comprehensive and modular recruitment solutions through every aspect of the recruitment process. Financial details of the transaction were not disclosed.
SAVVION EXPANDS IN INDIA...To meet the growing demand for business process management, Savvion has opened a second office in Mumbai, and brought on board a former SAP sales leader to help guide the expansion and manage India’s BPM market demand. Savvion is a global BPM leader, with premier customers and partners such as Genpact, Infosys, Intelenet Global Services, Integra Screen, Patni, Tata Consulting Services, Satyam, and Wipro in India.
SECURITY EXPERT JOINS PEROT SYSTEMS...Donna A. Bucella, former director for the United States Terrorist Screening Center (TSC), has joined Perot Systems Corporation to lead the development and implementation of the company's homeland security sector strategy.
New Business
The U.S. Department of Defense (DoD) awarded Unisys a follow-on contract to enhance visibility in the worldwide military logistics supply chain. The contract, which includes firm fixed-price and time and materials work, is worth approximately $28 million in the first year, if the government continues to order time and materials work at the current level. The total value of the contract could be approximately $112 million if the government exercises all options and continues to order time and materials work at the current level.
First Midwest Securities Inc., an Illinois-based brokerage firm, has selected EDS SOLCORP's WealthServ Investments platform to manage all of its front and back office needs. This new client engagement represents another important applications-related win for EDS in the financial services industry while accelerating EDS SOLCORP's expansion into the U.S. market. First Midwest Securities is an employee-owned independent brokerage firm.
CambridgeSoft Corporation has selected DarwinSuzsoft to establish an offshore development center (ODC) in Dalian, China. Creating a dedicated staff to support the continuous advancement of CambridgeSoft’s scientific analysis solutions, DarwinSuzsoft is extending the software leader’s reach to customers in China, Japan and other key Pacific Rim markets.
E.ON U.S. has selected Accenture and SAP for the utility’s largest-ever information technology (IT) transformation project. The goal of the E.ON U.S. Customer Care System (CCS) project is to implement a single system that replaces the different legacy customer systems at its subsidiaries, Louisville Gas and Electric Company and Kentucky Utilities Company.
European News
IBM says it will buy Telelogic AB, a Swedish software company, for about $745 million. Telelogic provides software development solutions and has more than 8,000 customers worldwide, primarily in aerospace and defense, telecommunications and automotive industries. Headquartered in Malmö, Sweden, with U.S. headquarters in Irvine, Calif., Telelogic has more than 1,100 employees and operations in 22 countries. Last year, the company reported revenues of approximately $208 million.
Global Sourcing Supply Far Exceeds Demand; Only Handful of ‘Mega’ Companies Fully Leveraging Offshore Business Support Services Advantages
Although Global Sourcing for business process services is a $17-plus billion (US) market and continues to grow steadily at a 40 percent annual rate, the majority of companies in developed nations have still not yet offshored in a significant way according to Everest Group, a leading independent advisor on global sourcing.
In response to these issues, Everest will hold a one-hour Webinar on Thursday, June 21, at 9 a.m. CDT / 10 a.m. EDT / 7:30 p.m. IST. Hosted by Jim Mikell and Sheetal Bahl, Research Director, Everest Research Institute, this webinar will will present a “how to” guide for assessing global sourcing opportunities within your organization and discuss the following topics.
• Trends in adoption of global sourcing across industries, including offshoring, outsourcing and captive operations
• Successful approaches to assessing opportunities for global sourcing with any organization
• Lessons learned on topics such as benchmarking, requests for proposal, and change management
To register, please visit: http://www.everestgrp.com/Webinars.
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June 06, 2007
Top Stories
CERIDIAN TO BE ACQUIRED BY THL PARTNERS AND FNF...Ceridian Corporation, Thomas H. Lee Partners, L.P. and Fidelity National Financial, Inc. have entered into a definitive merger agreement under which Ceridian will be jointly acquired by THL Partners and FNF in an all cash transaction valued at approximately $5.3 billion. Ceridian shareholders will receive $36.00 per share in cash for each share of common stock they hold. Ceridian is a leading provider of human resources, transportation and retail information management services, serving businesses and employees in the U.S., Canada and Europe.
HP, BT EXPAND ALLIANCE...HP and BT announced an expansion of their alliance to meet growing customer demands for standardized and flexible collaborative IT and network services around the globe. The strengthened alliance positions the two companies as preferred partners in the management of outsourced IT and network services and builds on a successful three-year go-to-market model that has attracted more than $1.5 billion in contract revenue since 2004 and more than 25 customers, including FirstGroup, Aker Kvaerner and Anglo-American.
KELLY SERVICES EXPANDS IN CHINA...Kelly Services, Inc. has acquired P-Serv, a company specializing in temporary staffing, permanent staffing,outsourcing and executive search with operations in Mainland China, Hong Kong and Singapore. The acquisition increases Kelly's global footprint to 33 countries and territories.
New Business
HP has signed a managed print services contract with Maritz, a sales and marketing services company. Under terms of the contract, HP’s Managed Print Services unit will deploy a modular suite of scalable imaging and printing products, supplies, management software and professional services to help St. Louis-based Maritz streamline printing processes and lower costs.
Colombian airline Avianca has chosen IBM to operate and manage its information technology, in a deal valued at $12 million. IBM will provide services including administration of the airline's datacenter operations, end-user support services including helpdesk and onsite support, inventory administration, network management, and support for mainframe and midrange server systems.
EDS announced that it has signed a contract with Public Works and Government Services Canada, with an option for up to three years of follow-on support, to implement an advanced mission planning system for the Canadian Department of National Defence (DND).
European News
Unisys Corporation announced that its Norwegian subsidiary signed a worldwide IT outsourcing contract with Norway-based Elopak, a leading global packaging company. Under the terms of the six-year contract, signed in the first quarter of 2007, Unisys will provide Elopak with a comprehensive suite of IT services. The contract has an estimated value to Unisys of $18.6 million. Unisys will provide outsourcing services to support more than 1,500 Elopak employees at 33 locations in 25 countries on five continents.
Schindler, one of the world’s largest suppliers of escalators and elevators worldwide, selected ADP to supply and maintain its payroll system. Schindler chose ADP’s single-source, multilingual, multicurrency payroll outsourcing service GlobalView to gain a single-source payroll solution for Schindler’s 16,000 employees across 14 European countries.
Eversheds, one of the largest full-service law firms in the world, has outsourced its UK Service Desk, desk-side support and datacenter hosting and management to Computacenter under a £27 million contract. Computacenter Services will manage and host the firm’s datacenter environments and provide 24x7 IT support services to 4,000 users across Europe and Asia.
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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.
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.
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.
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.
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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.
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.
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.
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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.
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.
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.
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.
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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.
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.
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.
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.
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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.
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.
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.
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.
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April 25, 2007
Top Stories
ACS GETS REVISED OFFER...Affiliated Computer Services, Inc. has received a revised proposal from Darwin Deason, Chairman of the Board of ACS, and Cerberus Capital Management, L.P., to acquire, for a cash purchase price of $62 per share, all of the outstanding shares of the company's common stock, other than certain shares and options held by Deason and members of the company's management team that would be rolled into equity securities of the acquiring entity in connection with the proposed transaction.
UNISYS POSTS FIRST QUARTER PROFIT...Unisys Corp. earned $3.6 million, or a penny per share, for the first quarter, up from a loss of $27.9 million, or 8 cents per share, in the same period a year ago. The company also announced plans for around of job cuts in the U.S. and the U.K.
EXECUTIVE CHANGES AT MERCER HR...Mercer HR Services announced that Mary P. Tinebra, 47, who has played an integral role in the growth of the firm’s outsourcing business, has been appointed Global Leader of Sales and Alliances. To further strengthen the leadership team and support service delivery for both clients and their employees, Sean D. Andersen has joined Mercer HR Services as the Leader of Organizational Effectiveness Practices, and Joe Mehringer has joined as the Total Retirement Product Manager.
CHANGES AT HEWITT...Hewitt Associates, Inc. has named Jay C. Rising to president of the company’s HR outsourcing business. Additionally, within Hewitt’s benefits outsourcing business, Steven N. Fein has been appointed to the newly created position of sales and product strategy leader, and Robert D. Thomas has joined to lead client implementations, reporting to Rohail Khan, who continues as leader of operations.
CONWAY HEADS ACS FEDERAL SOLUTIONS...Timothy C. Conway has been named Senior Vice President and Managing Director of Federal Solutions in the Government Solutions Group of Affiliated Computer Services, Inc. 9ACS). He reports directly to Tom Burlin, ACS Executive Vice President and Chief Operating Officer in charge of Government Solutions.
New Business
EDS has been selected by the U.S. General Services Administration to provide identity management services to federal government civilian agencies. These services will allow agencies to comply with Homeland Security Presidential Directive 12 (HSPD-12), which calls for a mandatory government- wide standard for a secure common form of identification for all federal government employees and contractors. The single award GSA Federal Supply Schedule task order is worth $66 million and will run through September 2011 if all options are exercised.
The Indiana Department of Child Services has contracted with Unisys to maintain, enhance and evolve the Indiana Child Welfare Information System (ICWIS) over the next 18 months. ThE work is an extension of a contract on which Unisys began working in 1995, when the state hired the company to design, develop and implement a statewide child welfare system for 92 Indiana counties. Since then, Unisys has won a series of ongoing support and maintenance contracts to enhance the application based on client requirements
European News
ARINSO International, a provider of HR Technology Consulting & Outsourcing Services, has been selected to provide payroll and time management services to Philip Morris International (PMI). ARINSO will supply payroll and time management services in respect of over 20,000 employees within Europe, Eastern Europe, Middle East and Central Asia. The contract with PMI covers a period of six years.
The 2007 RUSSOFT Forum is due to be held in St. Petersburg, Russia from June 20th-22nd. This year’s event will play include a series of industry panels and presentations on the Russian outsourcing industry featuring top executives from around the world.
Alliances
Achievo Corporation, a global software and information technology outsourcing provider with a local front-end and China back-end service model, has signed a vendor service agreement with CA to provide professional services to CA clients in China. Under the terms of the agreement, Achievo will provide CA product implementation, customization and maintenance. Recently, Achievo announced it had added a team of CA-certified engineers to its work force in Beijing.
HCL Technologies Ltd., a leading IT global services provider and Advanced Electronics Company (AEC), a Riyadh-based Economic Offset Program Company, have signed an agreement to implement IT projects in Saudi Arabia. Under the agreement, AEC and HCL Technologies (through its wholly owned subsidiary) will work jointly to implement and execute Integrated IT Solutions and Services for business transformation, covering the IT spectrum from end-to-end, including systems integration, package implementation, application development and maintenance, IT infrastructure Management and BPO.
BISYS WealthSolutions, a provider of managed account outsourcing services for asset managers and program sponsors, and Bonaire Software Solutions, LLC, a global developer of software and technology solutions for the financial services industry, announced a strategic alliance that will provide current and prospective BISYS clients with a web-based portal for automated online fee calculations for tracking revenue streams and invoicing managed account clients.
April 18, 2007
Top Stories
CIBA TAPS BT FOR MANAGED SERVICES...BT is entering into a strategic supplier agreement with Ciba Specialty Chemicals (Ciba), to provide a broad package of managed ICT-services to Ciba's operations around the world. This includes deploying a global IP telephony solution running across a BT managed LAN and WAN service, a global IT security solution and a flat rate voice service. The partnership will provide Ciba with improved management of costs for existing infrastructure, together with a technology refresh over the life of the agreement to equip Ciba with a modern suite of networked IT services to support business operations globally. Headquartered in Switzerland, Ciba Specialty Chemicals is active in more than 120 countries.
IBM FIRST QUARTER EARNINGS UP...IBM (NYSE: IBM) today announced first-quarter 2007 diluted earnings of $1.21 per share from continuing operations, an increase of 12 percent as reported, compared with diluted earnings of $1.08 per share in the first quarter of 2006. First-quarter income from continuing operations was $1.8 billion compared with $1.7 billion in the first quarter of 2006, an increase of 8 percent. Total revenues for the first quarter of 2007 of $22.0 billion increased 7 percent (4 percent, adjusting for currency) from the first quarter of 2006.
FREEBORDERS NAMES NEW TOP EXECUTIVE...Freeborders, a leading provider of technology solutions and outsourcing from China, announced that Jean Cholka has been named President and Chief Executive Officer. Cholka most recently was a member of the executive team at Kanbay International, the highly successful global IT services consultancy based in Chicago with large delivery centers in India.
EDS ISSUES DIVIDEND...EDS declared a dividend of $0.05 per share on its common stock, payable June 11, 2007, to shareholders of record as of the close of business May 15, 2007.
US TECHNOLOGY OPENS KL CENTER...US Technology has opened a new center in Kuala Lumpur, Malaysia. Located in the prestigious SME Technopreneur Centre in Cyberjaya, the new Malaysia facilities will expand the company’s Asia Pacific operations and extend its capabilities to provide services to enterprises throughout Malaysia, Singapore and Hong Kong – one of the fastest-growing regions in the world.
European News
Vodafone and Accenture have signed a multi-year agreement under which Accenture will support Vodafone in the development and implementation of a single, global enterprise resource planning (ERP) system to improve the management of information. Accenture will help to enhance the efficiency of Vodafone’s finance, supply chain and human resource capabilities across 17 of its operating companies as well as other group functions. The implementation is scheduled to run for around three years. Financial terms were not disclosed.
Luxoft, Russia’s largest provider of high-end IT outsourcing services to clients such as Boeing, Deutsche Bank, IBM, UBS, T-Mobile and Dell, announced strong performance for its 2006 fiscal year ending March 31, 2007. Revenues were up 54 percent over the previous year based exclusively on organic growth. Total earnings came in at $69M USD, up from $45M USD for the previous fiscal year. Luxoft estimates revenues to reach $110M USD in FY 2007 from organic growth and continues looking for strategic acquisitions.
Rosaleen Blair, chief executive of Alexander Mann Solutions, has been named as the Veuve Clicquot Businesswoman of the Year. The award, which recognises female entrepreneurs, was presented to Blair for the way in which she has revolutionized recruitment for large companies.
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April 11, 2007
Top Stories
ACCENTURE WINS $252 MILLION DLA CONTRACT...Accenture has been awarded a contract by the Defense Logistics Agency (DLA) to provide business systems integration, systems engineering and application management services. The base contract is for five years and is valued at $155 million, with options to extend the agreement by another five years that are valued at $97 million. The Enterprise Business System (EBS) integration and sustainment contract continues DLA’s modernization efforts and provides application management support for the agency’s enterprise systems.
XEROX NAMES PRESIDENT OF GLOBAL SERVICES...Xerox Corporation announced the appointment of M. Stephen Cronin to president, Xerox Global Services. He replaces Tom Dolan, who is assuming the role of president, Xerox Global Accounts. Cronin is responsible for driving Xerox’s growth in document management services including consulting and outsourcing services, records management, digital imaging, e-discovery for litigation support and managed services in more than 130 countries.
UNISYS NAMES VP FOR BUSINESS INNOVATION...Unisys Corp. named Craig Samuel to the newly-created position of vice president, Business Innovation. In this role, he reports directly to Unisys Executive Vice President and President of Worldwide Sales, Marketing and Technology Peter Blackmore. Samuel will continue to serve as president of the Institute for Innovation and Information Productivity, a leading, non-profit technology research organization that Unisys has recently joined.
EDS TO BROADCAST ANNUAL MEETING LIVE ON WEB...EDS will broadcast its annual shareholders meeting live on the Internet beginning at 1:00 p.m. Central time (2:00 p.m. Eastern) Tuesday, April 17 at the offices of EDS, 5400 Legacy Drive, Plano, Texas. To access the meeting, go to this site. Participation will be listen-only mode.
SATYAM OPENS DEVELOPMENT CENTER IN BRAZIL...Satyam Computer Services has launched a 4,500-square-foot development center in Sao Paulo, its largest facility in South America. The Satyam Latam Center is already providing services for several Brasilian, other South American, and global customers.
New Business
CompuCom Systems, Inc. has been awarded a three-year contract extension for providing deskside support services to longstanding client, Raleigh, N.C.-headquartered, First Citizens BancShares Inc. whose BancShares’ First Citizens Bank and IronStone Bank subsidiaries operate 400 branches in more than 200 cities from North Carolina to California.
Affiliated Computer Services, Inc. has been awarded a renewed and expanded business process outsourcing (BPO) contract with Horizon Blue Cross Blue Shield of New Jersey, the State's largest health insurer. Financial terms of the agreement were not disclosed.
ExcellerateHRO has signed contracts to provide Relocation and Assignment Services to KLA-Tencor Corp., the world leader in yield management and process control solutions for semiconductor manufacturing, and GameStop Corp., the world's largest video game and entertainment software retailer. Financial terms of the agreements were not disclosed.
Bunzl Distribution USA, Inc., a leading supplier of disposable paper and plastic packaging supplies, signed a $4.5 million contract with AT&T Inc. for a range of networking and voice services. The three-year agreement extends a long-standing relationship between the two companies. Bunzl Distribution leases and operates more than 100 warehouses that serve all 50 U.S. states and Puerto Rico as well as Canada, the Caribbean and parts of Mexico.
European News
Adecco, the human resource (HR) services giant says it plans to delist its American Depositary Shares (ADS) from the New York Stock Exchange (NYSE), to terminate its American Depositary Receipts (ADR) program and to end the registration of its shares under the Securities and Exchange Act of 1934 (Exchange Act), citing low trading volume. The company says it will further develop its business operations in the US, but concentrate its trading volume at virt-x and Euronext, which reduces complexity and therefore costs.
Outsource Partners International, Inc. (OPI), announced the appointment of Stuart Graham to the European Advisory Board. The Advisory Board is made up of several of Europe’s most experienced and respected business leaders. Graham has spent his entire career to date within outsourcing, including ISS A/S, the global FM business, until 2002 as Group Chief Operating Officer, then most recently as Chief Executive of the Johnson Service Group.
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April 04, 2007
Top Stories
BRISTOL-MYERS SQUIBB EXPANDS ACCENTURE DEAL...Accenture signed a multi-year research and development (R&D) agreement with Bristol-Myers Squibb Company, which expands the existing relationship between the two companies to include support for India-based clinical data and document management, pharmacovigilance, and scientific writing functions. The new agreement furthers Bristol-Myers Squibb’s efforts to significantly expand its R&D capabilities in India, and is an integral part of the company’s overall global strategy of accessing top-talent around the world in support of its goal of achieving sustainable, cost-effective growth.
HEWITT EXPANDS OPERATIONS IN ITALY...Hewitt Associates, a global human resources services company, has expanded its operations in Italy with the acquisition of Adelaide Consulting. Hewitt will now offer a broader range of HR consulting and actuarial services in the Italian market. In addition to the extended services, Hewitt has opened a new office in Rome, which will be managed by Adelaide co-founder Claudio Pinna, who becomes Hewitt's new leader in Italy.
ACXIOM ACQUIRES HARBINGER TECHNOLOGIES...Acxiom Corporation has acquired Harbinger Technologies Group, an ICx Technologies Company based in McLean, Va., with an office in Starkville, Miss. Financial terms were not disclosed. Harbinger is an international consulting and technology firm that develops software tools and training programs for personnel involved in homeland defense, national security and the prevention of international terrorism.
BIBER OPENS BPO INTELLIGENCE OFFICE IN INDIA...Biber, Inc. announced the funding and opening of its latest BPO intelligence office in Hyderabad, India. This new 100 employee center will be a cornerstone of the Salesdart's business intelligence and lead generation strategy for Biber. This will be the company's 5th office endeavor in India.
OCE OPENS NY LITIGATION SUPPORT FACILITY...Oce Business Services, Inc. has opened a new litigation support processing facility in Manhattan. The new satellite facility enables the company's CaseData eDiscovery and litigation support division to bring its capabilities closer to law firm and corporate clients located in the northeast.
PFSWEB EXPANDS PHILIPPINES CALL OPERATIONS...PFSweb, Inc. is expanding its Customer Care Services operations with a new 6,500 square foot customer call center in the Philippines. The new facility, located in downtown Manila, will initially house the customer service department for eCOST.com, PFSweb’s wholly owned subsidiary.
New Business
Computer Sciences Corporation announced that since January 1, its Federal Sector business unit has signed 62 previously unannounced contracts and subcontracts during its fiscal 2007 fourth quarter, which ended March 30. These contracts have a total estimated value of $1.28 billion if all contract options are exercised.
EDS will provide a range of information technology services to federal government agencies as a subcontractor to AT&T Government Solutions, a business unit of AT&T, Inc., which has been awarded one of three Networx Universal contracts by the U.S. General Services Administration (GSA).
Accenture has signed a master services agreement with Sun Life Assurance Company of Canada, a member of the Sun Life Financial group of companies, that establishes Accenture as a preferred vendor for the provision of application development and maintenance services to Sun Life Financial.
GlaxoSmithKline (GSK), Britain's largest drug company, has signed an outsourcing deal with India's Tata Consulting Services to establish a drug development support facility in Mumbai. A company statement said that under the terms of the deal, TCS will support GSK's global clinical research and development programme by providing outsourced data management and medical trial reporting services.
Computer Sciences Corporation has signed a contract extending its information technology (IT) services agreement with Sempra Energy. The new contract, which has a three-year base period and three one-year options, is valued at $67 million if all options
are exercised.
Oce Business Services, Inc. announced a multi-year agreement with the University of Pittsburgh Medical Center (UPMC) to provide document process management services. Under the agreement, Oce Business Services' team of professionals will help streamline document operations, shorten cycle times, and reduce costs while enhancing service levels at all UPMC facilities.
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March 29, 2007
Top Stories
EVEREST GROUP TAPS HRO VETERAN MONICA BARRON...Everest Group announced that human resources business process outsourcing expert Monica Barron has joined the firm as Vice President, Research from Accenture HR Services. Barron’s addition to Everest’s global Human Resources Outsourcing (HRO) consulting team reflects the growing demands of the HRO marketplace and the firm’s rapid growth in this area.
SATYAM SIGNS $200 MILLION DEAL WITH APPLIED MATERIALS...Satyam Computer has signed a five-year, $200 million contract with Applied Materials, Inc., the global leader in Nanomanufacturing Technology(TM) to the electronics industry. Satyam will provide application development, maintenance, and support (ADMS) plus business transformation core technology services to Applied Materials through a managed services delivery model.
7-ELEVEN EXTENDS EDS CONTRACT...7-Eleven, Inc. has extended its contract with EDS through February 2012. EDS will continue to develop, host and manage 7-Eleven's enterprise applications and the infrastructure that supports inventory and logistics processes, provides business intelligence insight and performs back-office functions, such as enterprise resource planning, payroll and accounting.
IBM VETERAN JOINS CAPGEMINI...Capgemini announced that 28–year IBM veteran Brian Smith will head the company’s Americas Outsourcing project management delivery organization. Smith, who most recently served as a global project executive with IBM in Switzerland, is joining Capgemini as vice president and delivery executive to manage the company’s project management delivery experts across the Americas.
LONGTOP EXPANDS NORTH AMERICAN PRESENCE...Longtop International (LTI), a leader in global software and information technology outsourcing combining a North American front-end and China back-end, announced the acquisition of Minecode LLC of Seattle. The merger is Longtop’s initial acquisition in North America and adds over 150 North-American based employees.
RPOWORLDWIDE OPENS COSTA RICAN CENTER...RPOworldwide, a leading provider of offshore Recruiting Process Outsourcing (RPO) services, and subsidiary of $270M Global IT and BPO provider iGATE Corporation announced the launch of a new Global Recruiting Center located in San José, Costa Rica. The opening of the Costa Rican center marks the sixth Global Recruitment Center for RPOworldwide, and increases the company’s round-the-clock recruitment coverage in North, Central and South American time zones.
New Business
Affiliated Computer Services, Inc. has won a $74.8 million contract for medical bill processing with the Office of Workers' Compensation Programs (OWCP) under the U.S. Department of Labor (DOL). The three-year contract continues services previously provided by ACS under a sub- contract agreement.
Kenexa has been selected to support the global recruiting initiatives of AB Volvo, one of the world's leading manufacturers of trucks, buses, construction equipment, drive systems for marine and industrial applications and aerospace components and services. Kenexa will provide an online global recruitment management system, Kenexa Recruiter BrassRing, which will allow Volvo to enhance its ability to recruit the best candidates from a geographically diverse talent pool.
Affiliated Computer Services, Inc. has been awarded a renewal of its defined contribution outsourcing contract with the Public Employee Retirement System of Idaho (PERSI), a multi-billion dollar retirement plan providing long-term benefits for more than 100,000 members who have had careers in public service. The three-year contract is valued at $4.7 million, with a two-year renewal option.
Alliances
Infosys BPO, the business process outsourcing (BPO) subsidiary of Infosys Technologies, will integrate Bottomline Technologies' capabilities for invoice automation into its outsourced services offering for global corporate clients.
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March 22, 2007
Top Stories
EDS WILL SPONSOR NOBEL PRIZE SERIES...EDS has signed a sponsorship agreement with Nobel Media to become a Global Sponsor of the Nobel Prize Series, and with Nobel Web to become its Global Technology Services Partner. The three-year agreement will enable EDS to apply its technology expertise for the benefit of the Nobel Prize Series and the organization's Web technologies, including supporting the development of content on nobelprize.org, Nobel's award-winning website.
QUANTA TO ACQUIRE INFRASOURCE...Quanta Services, Inc. and InfraSource Services, Inc. have signed a definitive merger agreement under which Quanta will acquire InfraSource in an all-stock transaction valued at $1.26 billion based on Quanta’s closing stock price on March 16, 2007. The combination of Quanta and InfraSource will create a leading specialized contracting services company serving the electric power, natural gas, telecommunications and cable television industries.
ADP REVISES FINANCIAL GUIDANCE...Automatic Data Processing, Inc. has revised its guidance for the current fiscal year ending June 30, 2007 to reflect the anticipated completion of the Brokerage Services Group (BSG) spin-off on March 30, 2007. As a result of the discontinued operations of BSG, forecasted earnings per share from continuing operations has, on a comparable basis, been updated to grow 20% to 23% in fiscal 2007 over last year’s restated $1.49 per share. Fiscal 2007 revenue growth has been updated to rise 12% to 13%.
JOHNSON CONTROLS SIGNS NEW HP CONTRACTS...HP and Johnson Controls, Inc., a global leader in building efficiency and facilities management, have signed two new services contracts. Under a renewed five-year agreement, HP will become Johnson Controls global services provider for more than 1,000 locations across 60 countries with services, including global asset management and refresh services as well as software deployment management.
HCL ISSUES BLACK BOOK ON RIM...HCL Technologies Infrastructure Services Division (HCL ISD unveiled a “BlackBook on the Remote Infrastructure Management (RIM) Industry – Demystifying the third ‘wave’ of Outsourcing” at the NASSCOM India Leadership Forum 2007. A basic Primer on the various facets of the RIM industry, this Black Book is targeted at spreading general awareness around this new Industry which has been described by Gartner as a “mega trend” and NASSCOM as the “third wave of outsourcing” after software and BPO.
New Business
Accenture has been awarded a contract worth up to $57.52 million by the U.S. Department of the Navy to provide business transformation services and military preparedness support.
Unisys Corporation has received a contract from Sun Hung Kai Financial (SHKF) to build a fully integrated securities trading system for SHKF. Based on open platform technology, the system is intended to provide a modernized environment that enables SHKF to capitalize on new opportunities to expand its presence in the securities market and deliver enhanced services to its customers. SHKF is the largest non-bank financial services provider in Hong Kong.
Cognizant announced a multi-year IT contract with New York-based publishing giant, Simon & Schuster, Inc (S&S). Under the agreement, Cognizant will provide Simon & Schuster with end-to-end information technology infrastructure management services including, helpdesk, network management, server management, application infrastructure support, and desktop support.
Computer Sciences Corporation has resumed work on the $628 million U.S. Air Force Expeditionary Combat Support System (ECSS) task order previously awarded and announced in September 2006. In addition, the company will expand into a new facility in Greene County, Ohio. Following a competitor protest, the Government Accountability Office upheld the Air Force's selection of CSC to provide a full range of information technology (IT) services to help the Air Force transform its global supply chain
Convergys Corporation has signed a direct response contract with Rosetta Stone, the publisher of Rosetta Stone language-learning software. Rosetta Stone is relying on Convergys to handle high volume calls with quality agents and a routing platform that directs calls based on the unique campaign profile.
Pan European payroll solutions to be discussed by Everest Group analysts during March 27 Webinar
Longstanding risks and troubles associated with regional payroll integration no longer exist following the advent of new technologies and payroll supplier solutions, according to the Everest Research Institute. This rapidly evolving trend and innovative supplier payroll solutions will be presented by the Institute’s leading business process analysts in a one-hour Webinar on March 27 at 16:00 GMT.
“Standardized, integrated regional Payroll and HRIS systems have effectively eliminated the hassles and risks associated with the complexities of multi-currency, multi-jurisdictional payroll applications,” said Paul Knowles and Darryl Conley of Everest Group. “However, Companies who want to gain competitive advantage through an integrated payroll solution must have a clear view of the ‘end game’ because payroll by itself is only one component of a total solution that can optimise a company’s business process. And to make an intelligent business decision in this regard, you need to think about the benefits and where you want change to take you.”
Topics of discussion during the Webinar include:
Recent developments that eliminated payroll complexities of the past, including open-source software and XML applications that led to supplier process innovations
How new applications and delivery models support significant cost/benefit and process improvements
Future opportunities for process optimisation, such as bundled HR and F&A business processes.
The Webinar will take place on March 27, 2007 at 16:00 BST, comprised of a 40-minute presentation followed by 20 minutes of questions and answers for participants.
To register, please visit here.
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March 15, 2007
Top Stories
TRADITIONAL IT INFRASTRUCTURE OUTSOURCING MODEL SHOWS DECLINE...Infrastructure outsourcing suppliers that employ the traditional model will face steadily declining revenues as early as 2009, according to a new study by the Everest Research Institute. This is the result of companies continuing to sign shorter-term IT outsourcing contracts that retain ownership of their assets but allow remote infrastructure support.
Although the traditional Infrastructure Outsourcing (IO) revenue decline trend is predicted to be slow, suppliers must develop new strategies to grow their businesses, according to Growth of Infrastructure Management Outsourcing (IMO). The report is one of a four-report series that provides a comprehensive examination of the IO market trends and dynamics.
CSC SIGNS $330 MILLION DEAL WITH DANISH TELCO...Computer Sciences Corp. has signed a seven year information technology services agreement worth about $330 million with TDC, the largest telecommunications company in Denmark. CSC will provide IT infrastructure services for TDC including desktop, helpdesk, data center and local area networking services to support some 17,000 users at TDC locations across the Nordic countries.
CAPGEMINI'S CIO SURVEY FINDS AGILITY CHALLENGE...During the last three years, 97% of businesses have experienced major change in the business environment, according to a worldwide survey carried out by Capgemini Consulting of CIOs with average budgets in excess of €100 million a year. And yet 38% of those questioned do not believe that business IT provides the agility it needs and 29% do not believe their IT function is able to keep pace with the changing business environment. With 83% of the CIOs stating IT agility as a strategic imperative needed to enforce overall agility in the organisation, many companies are at risk in this environment of accelerating change.
ACCENTURE, HHSC WIND DOWN CONTRACT...Accenture and the Texas Health and Human Services Commission (HHSC) have mutually agreed to wind down the contract between the Accenture-led Texas Access Alliance and HHSC. Under the contract, the Alliance has been working with HHSC to enhance its technology and business operations in support of the state’s modernization plans. Accenture and HHSC have not been able to agree on contract changes required to implement the “rebalancing” of the contract.
GE EXECUTIVE JOINS CERIDIAN AS CFO...Ceridian Corporation has appointed Gregory Macfarlane as chief financial officer, effective March 26, 2007. Macfarlane joins Ceridian from the General Electric Company, where he most recently served as executive vice president and chief financial officer for GE-WMC Mortgage, a $36 billion mortgage originator owned by GE.
EDS BUYS FIRM IN INDIA...EDS has reached a definitive agreement to acquire RelQ Software Private Ltd., a privately owned Bangalore, India-based software testing company. Over time, RelQ will be fully integrated into EDS' global testing organization and will accelerate EDS' global testing capabilities by offering low cost, high quality applications testing, validation and verification, and quality assurance services.
FISERVE ACQUIRES CRIME MANAGEMENT FIRM...Fiserv, Inc. has acquired NetEconomy, a leading financial crime management and compliance solutions provider to financial institutions across the globe with more than 130 implementations in 58 countries. Financial terms of the acquisition were not disclosed.
New Business
Acxiom Corporation announced the renewal and service expansion of a three-year agreement to provide IT outsourcing services for Safety-Kleen. Headquartered in Plano, TX, Safety-Kleen is North America’s leading provider of cleaning, environmental and re-refining solutions. the renewal will not only extend the current mainframe agreement that was established in 2000, but also includes new services for fully managed distributed systems management.
Accenture will provide First Horizon National Corp. with procurement services under a seven-year business process outsourcing (BPO) agreement. Financial terms of the contract were not disclosed. The agreement is designed to reduce First Horizon’s costs for purchased goods and services through improvements to supplier relationships, processes, technology and spend compliance.
Welch’s, the world’s leading marketer of Concord and Niagara grape-based products, has selected SPS Commerce as its outsourced EDI provider, replacing an internal managed EDI system. In 2006, Welch’s determined that its internal IT staff was needed to implement and support their new Oracle ERP solution, leaving insufficient resources to maintain and support their existing EDI system. Instead of hiring additional staff to manage their EDI system, Welch’s elected to outsource this capability and chose SPS Commerce’s solution.
The TriZetto Group Inc. has signed a software hosting and business process outsourcing agreement with Health First Health Plans. Under the agreement, TriZetto will host and manage on behalf of the customer its Facets Extended Enterprise core administrative system, HealthWeb Internet platform, and multiple specialized software components, including the Facets e2 Workflow application and consumer-directed application, which processes employer-funded health reimbursement arrangements and employee-funded flexible spending accounts. TriZetto will also provide administrative healthcare services, such as claims processing, member enrollment, and billing.
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March 08, 2007
Top Stories
TECHNOLOGY KEY TO FAO SUCCESS, EVEREST STUDY FINDS...Findings from a new Everest Research Institute study entitled “Technology Innovation – Delivering Higher Value in Finance and Accounting Outsourcing” reveals over 70 percent of Finance and Accounting Outsourcing (FAO) suppliers and the majority of experienced FAO customers view technology as playing a key role in ensuring the future success of their FAO environments.
IBM NETS $217 MILLION BTO CONTRACT WITH AMERICAN AIRLINES...IBM announced a $217 million, 7.5-year Business Transformation Outsourcing (BTO) agreement with American Airlines to transform and manage many of the airline's human resource (HR) functions. IBM's suite of automated services and technologies complemented by best practices for human resources administration, will be integrated with Mercer's administrative and consulting expertise. IBM will provide American support for standardized human resources processes including training, recruitment and staffing and HR-related information technology and call-center support and team with Mercer to provide the airline and its employees a comprehensive package of HR services.
UNISYS COMPLETES SALE OF MEDIA BUSINESS...Unisys Corp. has completed the sale of its media business to Atex Group Limited, a U.K.-based provider of software solutions and services to the global media industry. The agreement to sell the business was disclosed in November 2006 as part of previously announced plans by Unisys to divest businesses that are not central to its core strategy. The terms of the transaction were not disclosed.
BASF TAPS BT AMERICAS FOR MANAGED SERVICES...BT Americas Inc. has entered into a three-year, multi-million dollar managed services agreement with BASF Corporation, the world's largest chemical company, to deliver and manage a wide area network (WAN) service infrastructure for its North American region (United States, Canada and Mexico). Under the terms of the contract, BT will transform BASF’s existing WAN environment to a state-of-the-art, Internet Protocol (IP)-based network to support BASF’s expanding business.
CAPGEMINI TO OPEN CONTACT CENTER IN KANSAS...Capgemini will open a 600-seat contact center and begin serving clients in October. This will be the seventh Capgemini contact center in North America. When the center becomes fully operational, it is expected to generate more than $8 million in annual salaries in the Junction City area. Capgemini will begin recruiting personnel for the center in June.
New Business
Computer Sciences Corporation has renewed its information technology (IT) services agreement with DnB NOR, Norway's largest financial services group. The contract, which has a five-year base period and three one-year options, is valued at approximately $81 million if all options are exercised.
Altivity Packaging, a leading provider of folding cartons and bag packaging, has signed a five-year contract with Perot Systems in support of its business and technology integration strategy. Terms of the contract were not disclosed. The $2 billion packaging manufacturer is looking to Perot Systems to support its IT integration and alignment strategy, including a centralized data center and IT infrastructure housing Altivity's business systems and applications.
Affiliated Computer Services, Inc. has been awarded a five-year renewal of its retirement plan outsourcing contract with Allied Waste Industries, Inc., a leading provider of waste services. Financial terms were not disclosed.
Universal Special Auto Finance (Universal), a capital management company based in Greenwood Village, Colo., has chosen CSC’s banking services for a new nationwide, subprime automotive lending program. Under the five-year business process outsourcing (BPO) contract, CSC will provide lending software, accounting support, and collections and related back-office services.
Alliances
Accenture plans to expand its business intelligence services through increased collaboration with SAS, a leading provider of business intelligence (BI) software and services. The two companies plan to work together to enhance Accenture’s SAS capabilities and will also team to enhance SAS software and will also team to enhance SAS-based software and product development by leveraging Accenture’s industry expertise.
Wipro Limited and Ingres Corporation announced a strategic alliance to develop open source business solutions on the Ingres platform and undertake joint
go-to-market activities worldwide. With Ingres as the key technology, Wipro will establish an open source
Center of Excellence and practice in its Bangalore facilities.
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March 01, 2007
Top Stories
CSC SIGNS $275 MILLION DEAL WITH UKVISAS...Computer Sciences Corporation has signed a business process outsourcing contract with UKvisas, a joint UK Home Office and Foreign and Commonwealth Office directorate which operates as the overseas arm of the United Kingdom's integrated border management. CSC estimates the value of the agreement, which has a five-year base period and two one-year options, to be approximately $275 million (140 million pounds sterling) if all options are exercised.
ADP TO ACQUIRE INTUIT'S FULLY OUTSOURCED PAYROLL BUSINESS...ADP Employer Services, a division of Automatic Data Processing, Inc. has have entered into a definitive agreement whereby Intuit will transition its Premier customers and a portion of its Complete Payroll customers to ADP, representing up to 25,000 customers in total. These are business customers who prefer to completely outsource their payroll-related tasks to a third-party provider.
MANPOWER NAMES HEAD OF FRENCH UNIT...Manpower Inc. named Francoise Gri as president of its French operating unit, which accounted for $6 billion, or 34 percent, of its total revenues in 2006. Gri, 49, joins Manpower in March, coming from IBM where she was president and director general of its France and North Africa division. In both 2005 and 2006, she was named to Fortune's 50 Most Powerful Women in Business - International.
ACCENTURE MAKES GRANT TO ADMATRIX...Accenture announced a $1.5 million grant from the Accenture Foundations to Aidmatrix to further the non-profit organization’s innovative Global Relief Network. Aidmatrix leverages the power of technology and relationships with more than 35,000 charitable organizations to deliver critical aid – food, clothing, building supplies, medical and educational supplies – to people in need more quickly and efficiently.
DEMAND FOR GLOBAL RPO GROWS...Increased demand from multi-national companies and a greater emphasis on recruiting and staffing will generate the biggest buzz in the recruitment process outsourcing (RPO) industry in 2007 and beyond, according to The RightThing, Inc., an end-to-end RPO provider. The move toward worldwide RPO is expected to build momentum in late 2007 then hit the industry to stay in 2008, according to Terry Terhark, president and founder.
New Business
Circuit City Stores, a U.S.-based retailer of consumer electronics, has renewed an outsourcing learning services contract with Convergys, a Cincinnati-headquartered BPO services provider, for two years. The financial terms of the contract were not disclosed. Convergys has been offering its outsourcing services to Circuit City since 1999.
GlaxoSmithKline and Genpact have signed a multiyear contract to provide finance and accounting services for GlaxoSmithKline’s U.K. corporate business operations. The duration and financial terms of the contract were not disclosed. This is the third contract in two years to be signed between the pharmaceutical giant and Genpact.
ClientLogic, which recently merged with SITEL, Corp., announced the expansion of its partnership with XM Satellite Radio to continue providing customer service, technical support and customer retention services for XM’s 7.6 million subscribers in the U.S. and Canada. ClientLogic currently services XM Satellite Radio from contact centers in three nearshore and offshore locations.
Alliances
i2 Technologies, Inc. announced the expansion of its strategic partnership with IBM to deliver i2 FreightMatrix as Software as a Service. Under the agreement, i2 and IBM are increasing sales and marketing, implementation services, hosting and development investments to deliver the i2 hosted and subscription-based transportation management solution, i2 FreightMatrix.
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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.
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.
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.
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.
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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.
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.
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
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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.
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.
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January 31, 2007
Top Stories
EBIX TO MAKE NEW OFFER FOR DOCUCORP...Ebix, Inc. announced Thursday that it intends to submit a new offer to acquire all of the outstanding common stock of Docucorp International Inc. to the Docucorp Board in the next few days. On January 25, Ebix had made a proposal to acquire all of the outstanding common stock of Docucorp for $11 per Docucorp share in cash and Ebix stock or a total equity value of approximately $140 million.
CLIENTLOGIC COMPLETES SITEL MERGER...ClientLogic has completed its acquisition of SITEL Corporation by merger. Under the terms of the definitive agreement announced in October 2006, ClientLogic paid $4.25 per share in cash for all of the outstanding common stock of SITEL, whose shareholders approved the acquisition on January 12, 2007. The combined company is headquartered in Nashville and has over 65,000 associates across 28 countries and combined revenue of $1.8 billion.
PFSWEB EXPANDS IN CANADA...PFSweb, Inc. has completed the move of its Canadian headquarters to an expanded facility in order to support existing and new client growth. PFSweb provides web commerce technology, inventory management, fulfillment & logistics, freight management, returns processing and customer care services from its Canadian headquarters.
TALX REPORTS INCREASED THIRD QUARTER EARNINGS...TALX Corporation, a leading provider of human resource and payroll-related services, reported that fiscal third-quarter diluted earnings per share from continuing operations increased 23 percent to $0.27, which includes share-based compensation expense of $0.02, from the year-ago $0.22 per diluted share.
EDS NAMES BUSINESS DEVELOPMENT VP...EDS has named Christopher Derganc vice president of Global Corporate Business Development. Derganc, who joins EDS from Unisys Corporation, will report to Paul Currie, executive vice president of Corporate Strategy and Business Development and be responsible for identifying, recommending and driving merger, acquisition and divestiture opportunities across EDS' global operations.
New Business
Accenture has signed a seven-year agreement with Kimberly-Clark Corporation to provide a broad range of human resources services. Outsourcing of certain services to Accenture is part of Kimberly-Clark’s global competitive improvement initiatives, which were announced in July 2005. Other terms of the contract were not disclosed. Accenture will provide Kimberly-Clark with administrative services in the areas of recruitment, payroll administration, workforce reporting, employee data management, and training and development.
Sky Express, Russia’s first low-fare airline, has signed an outsourcing agreement for Navitaire’s hosted reservation and revenue management services. The services include Navitaire’s New Skies reservation system and SkyPrice revenue management system. Terms of the contract were not disclosed. Navitaire, a wholly owned Accenture subsidiary, provides technology and business solutions to the airline industry on an outsourced basis.
Affiliated Computer Services been awarded a contract by Mexico City metro operator Sistema de Transporte Colectivo (STC) to deliver a contactless ticketing automated fare collection system. The contract is valued at $9.3 million.
Affiliated Computer Services, Inc. has signed a five-year, $8.7 million contract with the Pennsylvania Department of Public Welfare (DPW) to provide a three-component Medical Management Review System (MMRS) to manage its care management, prior authorization, and case management functions.
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January 25, 2007
Top Stories
CSC SIGNS $378 MILLION BLUESCOPE STEEL DEAL...Computer Sciences Corporation has signed an information technology (IT) services contract with BlueScope Steel Ltd., a leading international flat steel solutions company. The contract, which includes a four-year base period and two two-year options, has a potential value of $378 million (AUD$480 million) if all options are exercised. CSC will be responsible for managing and delivering a diverse set of IT services ranging from consulting, applications development and support, disaster recovery, systems integration and end-user services on a variety of technology platforms.
IBM EARNINGS UP...IBM announced fourth-quarter 2006 diluted earnings of $2.26 per share from continuing operations, an increase of 12 percent as reported, compared with diluted earnings of $2.01 per share in the fourth quarter of 2005; the fourth-quarter 2005 diluted earnings include $0.10 per share for a one- time pretax curtailment charge of $267 million related to pension changes. Diluted earnings per share for the fourth-quarter 2006 grew 7 percent compared with the year-ago quarter of $2.11 per diluted share, without the one-time per share charge. Fourth-quarter 2006 diluted earnings per share include a $0.06 benefit as a result of a lower tax rate.
UNISYS EARNINGS UP FOR QUARTER...Unisys Corporation reported fourth-quarter 2006 pre-tax income of $49.3 million. Operating profit margins and earnings improved significantly in the quarter and service orders showed double-digit growth for the second consecutive quarter driven by strong demand for outsourcing. Fourth-quarter 2006 pre-tax income of $49.3 million increased 81 percent from pre-tax income of $27.2 million for the fourth quarter of 2005. The company reported fourth-quarter 2006 net income of $21.3 million, or 6 cents per share. The results included pre-tax pension expense of $43.7 million. These results compared with a fourth-quarter 2005 net loss of $31.1 million, or 9 cents per share, which included pre-tax pension expense of $44.3 million.
ACCENTURE OPENS SECOND CZECH CENTER...Accenture has opened its second Czech delivery center in Brno, which will provide application outsourcing for European clients. The Brno center will complement Accenture’s existing global delivery network of 44 delivery centers. In Central and Eastern Europe, Accenture already operates delivery centers in Bratislava, Bucharest, Prague, Riga and Warsaw. Accenture opened its Prague delivery center in 2001 and has been operating in the Czech Republic since 1991.
ACS NAMES FORMER WORLD BANK OFFICIAL TO BOARD...Robert Holland, former U.S. Executive Director of the World Bank, has joined the Board of Directors of Affiliated Computer Services, Inc.
New Business
Unisys Corp. signed a four-year contract with the Australian Department of Immigration and Multicultural Affairs (DIMA) to provide a range of outsourced desktop services. The contract is worth an estimated $110.5 million USD ($140 million AUD) over the initial four years, with the potential for future contract extensions. This contract follows DIMA’s recent award of a separate contract, under which Unisys provides biometrics solutions for DIMA’s border control initiative.
EDS announced a new, five-year, $97 million contract with the European Space Agency (ESA) that calls for EDS to manage the ESA's Corporate Information Technology (IT) Services and related infrastructure.
EDS has been awarded a $91.7 million contract extension to continue providing fiscal agent services to the state of Kansas. The contract was awarded to EDS at the end of the fourth quarter of 2006. The Kansas Health Policy Authority exercised its first three-year option on the contract, extending the agreement with EDS until June 30, 2011.
The U.S. Department of Justice, Asset Forfeiture Management Staff (DOJ AFMS), awarded Unisys Corporation a blanket purchase agreement (BPA), under which delivery orders may be issued for continued support of the Consolidated Asset Tracking System (CATS). The eight-year BPA could be worth approximately $112 million to Unisys, if the government orders services at the levels anticipated for the full eight-year term. The government already has issued orders for about $8 million.
Affiliated Computer Services, Inc. has been awarded a three-year renewal of its benefit plan administration outsourcing contract with American Financial Group, Inc. (AFG), a leading provider of property and casualty insurance, annuities, and supplemental health insurance.
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January 18, 2007
Top Stories
ACCENTURE SIGNS $100 MILLION DEAL WITH AIG...Accenture has signed a 10-year, US$100 million business processing outsourcing (BPO) agreement with AIG Europe S.A. to provide an IT platform and insurance support services to AIG Entrepreneur, an AIG unit specializing in Property and Casualty insurance for small and medium enterprises. The agreement which aims to maximize operational efficiencies and enhance services will be implemented in several European countries starting initially with France. Services will be provided to AIG Europe by Accenture Insurance Services – an Accenture business that offers insurance BPO services to life, annuity, pensions and P&C insurers globally – through Accenture’s service center in Bucharest, Romania.
NEW NAME FOR SIEMENS BUSINESS SERVICES...In conjunction with Siemens’ launch of the new Group Siemens IT Solutions and Services, Siemens Business Services, Inc. has been renamed Siemens IT Solutions and Services, Inc. The group will continue to provide a broad scope of IT services including innovative IT solutions, infrastructure outsourcing and the management and development of application software.
HP SERVICES NAMES NEW SVPS...HP has named Onagh Ash senior vice president of HP Services’ Consulting and Integration unit, and Bob Pryor has been named senior vice president of Global Business Development. Both will report to John McCain, senior vice president and general manager of HP Services.
ACS EXPANDS IN JAMAICA...Affiliated Computer Services, Inc. is expanding its global capabilities with the construction of a new, 65,000 square-foot office and call center facility in Montego Bay, Jamaica. ACS is also hiring 600 additional employees to staff the new location. Currently, ACS employs 1,300 people and is one of the largest information communication and technology services providers in Jamaica.
New Business
Rockwell Collins, a global leader in aviation electronics, has awarded HP a seven-year, $175 million global services contract to provide industry-standard solutions for IT infrastructure management, including help desk, desk-side support and server management.
Unisys Corporation has signed a worldwide IT outsourcing contract with Germany-based BSN Medical GmbH, an international provider of medical products for wound care, orthopedics and phlebology. Under the contract, Unisys will provide BSN Medical with a comprehensive suite of IT services. The five-year contract has an estimated value to Unisys of $35 million. Unisys will provide outsourcing services for BSN Medical at 35 locations worldwide, supporting 3,500 BSN Medical staff.
Cognizant has signed an IT applications outsourcing agreement with Kimberly-Clark Corporation covering an array of SAP and customized software applications, including strategic planning, product management, supply chain planning and execution, sourcing, sales and marketing, data exchange and compliance, enterprise management and customer management. The agreement has an initial term of five years with additional one-year extension options. Other terms of the agreement were not disclosed.
Linklaters, one of the world's leading law firms, has signed a multi-year contract with Perot Systems for use of its Lab- on-Hire service to have flexible, cost effective application development services. Perot will provide scalable resources for a variety of application development projects from its offshore delivery centres.
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January 11, 2007
Top Stories
EVEREST PREDICTS 30% FINANCE AND ACCOUNTING OUTSOURCING GROWTH IN 2007...The global Finance and Accounting Outsourcing (FAO) market is predicted to grow in excess of 30 percent in 2007 as the global infrastructure matures to enable F&A solutions that take advantage of low-cost offshore talent and robust supplier process offerings underpinned by F&A technology, according to a new report released from Everest Research Institute. The global FAO market has grown by more than 45 percent since the beginning of 2005 and reached $2 billion in expenditures in the United States last year, according to the Institute’s Finance & Accounting Outsourcing (FAO) Annual Report 2006.
HEWITT NAMES HEAD OF CORPORATE DEVELOPMENT AND STRATEGY...Hewitt Associates, Inc. has appointed Matthew C. Levin to the new management position of senior vice president, corporate development and strategy, effective immediately. Levin, 33, who joins Hewitt from IHS Inc., where he served as senior vice president of corporate development and strategic planning, will be responsible for Hewitt’s corporate development program, with a particular emphasis on mergers, acquisitions and partnership opportunities, as well as strategic and growth initiatives for both its consulting and outsourcing business segments. He will report directly to Chairman and CEO Russ Fradin.
KENEXA TO MAKE PUBLIC OFFERING...Kenexa Corporation intends to file a prospectus supplement with the U.S. Securities and Exchange Commission relating to an underwritten public offering of 3,750,000 shares of its common stock under an effective shelf registration statement. The underwriters will have an option to purchase up to an additional 562,500 shares from the company to cover over-allotments, if any.
New Business
Genpact, a global provider of business and technology services, has signed a five-year contract to provide certain finance and accounting activities for Kimberly-Clark Corporation. Outsourcing of these services to Genpact is part of Kimberly-Clark’s global competitive improvement initiatives, which were announced in July 2005. Terms of the contract were not disclosed.
Rockwell Collins has awarded HP a seven-year, $175 million global services contract to provide industry-standard solutions for IT infrastructure management, including help desk, desk-side support and server management.
Ness Technologies, has been awarded a multi-year offshore development contract by InfoVista, a leading provider of service-centric performance management software. Under the terms of the contract, Ness Technologies will establish an R&D center for InfoVista at Ness Technologies' offshore facility in Bangalore, India.
John Hancock Financial Services, a division of Manulife Financial, has extended its applications outsourcing contract with CSC for two more years, through May 2011. The newly negotiated contract provisions have an estimated total contract value exceeding $50 million and cover services to be delivered during the next four years.
Affiliated Computer Services, Inc. has been awarded an expansion to its multi-million dollar contract with Symetra Financial, a leading life insurance and financial services company. The expanded agreement will add desk-side support services to ACS' existing five-year contract, which commenced in 2004.
ACS has also been awarded a new five-year, $87.3 million contract by the Florida Healthy Kids Corporation (FHKC) to administer the State's Child Health Insurance Program (CHIP). The contract may be extended for up to five additional years at FHKC's option.
Volvo Car Corporation has extended its existing outsourcing contract with WM-data, a LogicaCMG company. The duration and financial terms of the deals were not disclosed. Volvo Car has been outsourcing its operations and support services to WM-data since 2002. WM-data is responsible for developing, implementing and supporting Volvo Cars’ global client and server platform for about 17,000 clients in Sweden and national sales companies across the rest of Europe.
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January 04, 2007
Top Stories
ACCENTURE REPORTS STRONG FIRST QUARTER...Accenture reported strong financial results for the first quarter of fiscal 2007, ended Nov. 30, with net revenues of $4.75 billion, an increase of 14 percent in U.S. dollars over the same period last year and above the high end of the company’s previously stated expectations. GAAP diluted earnings per share were $0.46, an increase of 28 percent over the first quarter of fiscal 2006. The company achieved the highest quarterly net revenues in its history, driven by record net revenues across all three geographic regions and all five operating groups.
OASIS ACQUIRES KELLY STAFF LEASING...Oasis Outsourcing Holdings, Inc., the nation's largest privately-held Professional Employer Organization (PEO), has acquired Kelly Staff Leasing from Kelly Services, Inc., a leading provider of human resources, payroll processing, benefits and risk management solutions to small and medium-sized businesses throughout the United States. The acquisition includes its primary facility in San Diego, CA which houses its Operations Center, including payroll processing, customer service and human resources support personnel.
PEROT SYSTEMS ACQUIRES GOVERNMENT IT SERVICES FIRM...Perot Systems Corporation has signed a definitive agreement to acquire QSS Group, Inc., a U.S. federal government information technology services company based in Lanham, MD.
WATSON WYATT ACQUIRES DUTCH PARTNER...Watson Wyatt Worldwide announced the intention to acquire its alliance partner in the Netherlands, Watson Wyatt Brans & Co. A definitive agreement is expected to be signed in the first quarter of 2007. The two firms have maintained a close relationship for many years.
R.R. DONNELLEY ACQUIRES TRADE PRINTER...R.R. Donnelley & Sons Company will acquire Von Hoffmann, a leading printer of books and other products that serves primarily the education, trade and business-to-business catalog segments, from Visant Corporation for purchase consideration of $412.5 million. The all cash deal, which is subject to customary closing conditions, including regulatory approval, is expected to close by the end of the first quarter of 2007, and to be accretive to RR Donnelley's earnings in the first year of operations.
OPI NAMES EUROPEAN ADVISORY BOARD...Outsource Partners International, Inc. (OPI), a leading professional services firm dedicated solely to finance and accounting outsourcing, announced the formation of a European Advisory Board. The Advisory Board, which brings together several of Europe’s most experienced and respected business leaders, will work hand-in-hand with OPI leadership to guide OPI’s growth and development throughout the UK and Europe.
New Business
The UK Ministry of Defence has approved an amendment to the Defence Information Infrastructure (Future) contract, confirming ATLAS will deliver DII Increment 2a, 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 MOD DII (F) contract over the next eight years by $1.27 billion.
Ness Technologies, a global provider of IT services and solutions, has been awarded a multi-year offshore development contract by InfoVista, a leading provider of service-centric performance management software. Under the terms of the contract, Ness Technologies will establish an R&D center for InfoVista at Ness Technologies’ offshore facility in Bangalore, India.
Riverbed Technology, a provider of wide-area data services (WDS) solutions, has selected PFSweb, Inc., a global provider of integrated business process outsourcing (BPO) solutions, to provide product configuration and final assembly services for its WDS product lines, as well as inventory management, order fulfillment and international logistics services. The terms of this contract, signed in November of 2006, were not disclosed.
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