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February 27, 2008
Top Stories
HP SIGNS GLOBAL SERVICE CONTRACT WITH KONECRANES...HP and world-leading provider of lifting solutions and services Konecranes have signed a 5-year global service contract that covers global workstation management and support services in 37 countries. The financial details of the contract were not disclosed. The agreement includes Service Desk services in seven languages, data security solutions, as well as on-site support, installation, maintenance, lifecycle management and application management services for the workstations. HP will harmonize the desktop computer environment within the whole Konecranes Group, and Konecranes employees at 350 sites will start using HP’s desktops and laptops by May 2009. According to the agreement 16 Konecranes employees, seven of which in Finland, will join HP’s staff.
SIEMENS PLANS RESTRUCTURING, LAYOFFS...Siemens Enterprise Communications, a wholly owned subsidiary of Siemens AG, plans extensive restructuring activities to accelerate the company’s transformation from a hardware supplier to a software and solutions provider. Planned sales or solutions involving a third party would affect roughly 3,000 employees worldwide, of whom about 1,200 are in Germany. In addition, Siemens plans to cut 3,800 jobs worldwide, including up to 2,000 in Germany. In Germany, SEN’s headquarters and other administrative and support functions are expected to be affected the most.
Posted by jbowles at 07:05 PM
New Business
R.R. Donnelley & Sons Company has been awarded an $800 million contract by McGraw-Hill Education, a leading provider of resources that address virtually every aspect of the education market from pre-K through professional learning. The seven year agreement includes a wide range of products including textbooks, workbooks, testing materials, teachers’ editions and ancillary products.
Convergys Corporation has upgraded Nawras’ billing and customer care system to a newer version of the Convergys Infinys [r] solution. Nawras, winner of the CommsMEA 2007 Middle East Mobile Operator of the Year, provides 96 percent countrywide coverage in Oman, and has over one million customers. The system upgrade from Convergys is providing Nawras with expanded capabilities to launch converged voice and data services to both pre- and post-paid customers. These include next generation services based on IP and bundles of voice, data, and video with cross-product discounts. The upgrade follows Convergys’ product road map for wireless operators and was completed on time and within Nawras’ budget.
Posted by jbowles at 07:04 PM
International News
EDS announced a six-year, information technology (IT) services agreement with SR Technics, one of the world’s leading independent providers of technical services for the civil aviation sector. Financial terms of the agreement are not being disclosed. Under this agreement, EDS will provide service desk support, workplace management, hosting, storage, backup and archiving, as well as network services for major locations of SR Technics in Switzerland, United Kingdom, Ireland and Bahrain, with a total of more than 4,000 users. As part of the agreement, EDS and SR Technics renewed an applications services agreement, which was first signed in 2001. Under this renewal, EDS will host SR Technics SAP, SAS and Maintenance and Engineering Document Systems.
Unisys Corporation announced that its Australian subsidiary has signed a contract with the Australian Department of Defence to provide a range of IT support services to 460 Defence locations across Australia. The contract, with an initial term of five years following a transition period of an estimated 18 months duration, has a value estimated at approximately US$225/A$240 million, with the potential for two future contract extensions, each of two years duration. Under the contract, Unisys will provide a range of IT support services, including network security and infrastructure support, server and desktop support to all sections within the Australian Defence Force. Unisys will also standardize IT support processes nationally. These IT services support key operations of Defence, including the Australian Defence Force.
Cummins Inc.,which designs, manufactures and sells diesel engines and related technologies, has named Infosys as one of three Global Preferred Vendors (GPVs) for IT application outsourcing and business consulting services. This new partnership will bolster Cummins operations so it may handle the growing global demand for power technologies and components.
Posted by jbowles at 07:03 PM
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Posted by jbowles at 07:02 PM
February 20, 2008
Top Stories
OFFSHORE CALL CENTER OUTSOURCING GROWING RAPIDLY...Outsourcing call center work to offshore destinations is in a rapid growth phase with key delivery centers such as India, Philippines and central and Eastern Europe experiencing annual growth rates in excess of 30 percent, according to a new Everest Research Institute study. Consolidation of processes within the customer management function and across buyers’ business units has become the primary focus of Contact Center Outsourcing (CCO) solutions with investment in technology solutions and global delivery mechanisms serving as catalysts, according to the study.
HP FIRST QUARTER EARNINGS UP...HP announced financial results for its first fiscal quarter ended Jan. 31, 2008, with net revenue of $28.5 billion, up 13% from a year earlier and up 8% when adjusted for the effects of currency. In the first quarter, GAAP operating profit was $2.6 billion and GAAP diluted earnings per share (EPS) was $0.80, up from $0.55 in the prior-year period. Non-GAAP operating profit was $2.8 billion, with non-GAAP diluted EPS of $0.86 up from $0.65 in the prior-year period.
COMPUCOM OPENS NOC IN DALLAS...CompuCom Systems, Inc. announced the opening of a newly expanded Network Operations Center (NOC) located in Dallas to include remote monitoring and management services for its growing client base. Through its new facility, CompuCom offers a comprehensive suite of network, server, wireless, security, database, application and 7x24x365 network performance management services and user administration capabilities. The Dallas-based location is part of CompuCom’s network of Certified Delivery Centers that provide a broad range of onshore, nearshore and offshore infrastructure management capabilities.
THE RIGHTTHING ACQUIRES AIRS...The RightThing, a leader in customized recruitment process outsourcing (RPO) announced the acquisition of AIRS, a recruitment training and sourcing technology company, based in Wilder, VT. The acquisition will enhance The RightThing’s services by integrating AIRS recruitment sourcing software as well as training solutions, delivering customers a comprehensive suite of tools.
Posted by jbowles at 06:44 PM
New Business
Computer Sciences Corporation has won an outsourcing contract from the U.S. Air Force to provide aviation maintenance support services for the 57th Maintenance Group at Nellis Air Force Base, Nevada. CSC estimates the value of the contract, which has a 15-month transition period, an eight-month base period and five one-year options, to be $211 million if all options are exercised.
Yoh has signed a three-year recruitment outsourcing agreement with Syngenta Inc. to identify, attract, and hire high-impact talent for nine Syngenta locations. Yoh HR Solutions will provide end-to-end Recruitment Process Outsourcing (RPO) services that will help the U.S. division of the $8.1 billion global agribusiness improve time-to-fill, reduce cost-per-hire, and free Syngenta’s leadership to focus on business-critical issues, rather than hiring.
Posted by jbowles at 06:44 PM
International News
Eisai Co., Ltd. and Accenture Japan., Ltd. announced that under the global outsourcing agreement signed between Eisai Medical Research Inc. and Accenture LLC, Accenture will provide Eisai with clinical data management services through its delivery center in Chennai, Tamil Nadu, India. Starting full operation from February 13, 2008 the service will cover Japan, the United States, and Europe. This is the first time a major Japanese pharmaceutical company has outsourced clinical data management services as a Business Process Outsourcing to India.
Siemens IT Solutions and Services has won orders to improve the IT infrastructure of India's two largest TV stations. For market leader Star Group, Siemens will implement a Pilot broadcasting management system the channel Star One. They will also supply an IT solution for customer and financial management for Sun Direct TV, a pay-TV offshoot of the country's second largest television company Sun Network. The two orders have a joint value of several million euros.
Posted by jbowles at 06:43 PM
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Posted by jbowles at 06:42 PM
February 13, 2008
Top Stories
HP WINS $675 MILLION UNILEVER EXTENSION...HP and Unilever announced an extension of their relationship with the signing of a seven-year, $675 million outsourcing contract for the management of Unilever’s technology infrastructure in the Americas, Asia, Africa, Turkey and Middle East. HP will provide an infrastructure designed to quickly adapt to the changing needs of Unilever’s business by standardizing, virtualizing and optimizing Unilever’s enterprise computing environment in the regions above as well as its client services environment in Asia Pacific, Africa, Turkey and the Middle East.
EDS QUARTERLY REVENUES UP...EDS reported fourth quarter 2007 adjusted net income of $295 million, or 55 cents per share, versus fourth quarter 2006 adjusted net income of $254 million, or 47 cents per share. Fourth quarter 2007 net income, in accordance with U.S. GAAP, was $189 million, or 36 cents per share, versus $217 million, or 40 cents per share, in the prior year's fourth quarter (A statement reconciling GAAP and adjusted results is included in this release). Fourth quarter revenue increased 2 percent to $5.83 billion from $5.70 billion in the year-ago quarter(1). Fourth quarter revenue decreased 3 percent on an organic basis, which excludes the impact of currency fluctuations, acquisitions and divestitures.
Posted by jbowles at 05:53 PM
New Business
Computer Sciences Corporation has won a contract to provide technical support services for the U.S. Air Force Air Education and Training Command at Vance Air Force Base in Enid, Okla. CSC estimates the value of the contract, which has a six-month base period and six one-year options, to be $482 million if all options are exercised.
CSC has also won a contract to provide information technology (IT) infrastructure operations support to Pension Benefit Guaranty Corporation (PBGC). CSC estimates the value of the contract, which has a one-year base period and four one-year options, to be $70 million if all options are exercised.
Affiliated Computer Services, Inc. announced an amended contract with Solano County, California, to establish and operate a 311 customer service center within the county. The 3.5-year contract has a value of $4 million. ACS will provide implementation services, including development of a knowledge database and service request workflow. ACS employees will manage and staff the customer service center.
Posted by jbowles at 05:52 PM
International News
Atos Origin, an international IT services company, announced 2007 fourth quarter revenue at EUR 1 548 million representing a +8.6% year-on-year growth and an organic growth of +5.3% at same scope and exchange rates. For the total year 2007, revenue was EUR 5 855 million representing a +8.5% top line growth and a +4.3% organic growth at same scope and exchange rates.
Tata Consultancy Services has announced plans to organize its global operations into integrated, customer-centric units to enhance customer focus, drive operational agility and address new growth opportunities in the market. The new global operating model will provide customers with a single view of TCS encompassing project delivery and relationship management and enable a sharper focus on the customer.
Posted by jbowles at 05:52 PM
Advertising Information
Outsourcing Alert reaches 50,000 key decision-makers a week. For advertising information and rates, contact Peter Bowes. Tel: (508)668-6908 or send an email.
Posted by jbowles at 05:51 PM
February 06, 2008
Top Stories
CSC TO RELOCATE CORPORATE HQ TO VIRGINIA...Computer Sciences Corporation announced that its Board of Directors has approved a decision to relocate corporate headquarters to Falls Church, Va., from El Segundo, Calif. The relocation will consolidate into one geographical location the corporate executive leadership with the company’s global operational headquarters.
CONTINENTAL ADDS EDS AIRLINE SOLUTION...EDS has reached an agreement with Continental Airlines to provide the airline with EDS Electronic Fares Services, one solution of a broad suite of leveraged passenger airline industry applications available from EDS. This agreement is an addition to the information technology (IT) outsourcing agreement EDS and Continental announced on October 23, 2007. The add-on agreement was signed in the fourth quarter of 2007 and financial terms of the agreement are not being disclosed.
IBM OPENS NEW GLOBAL DELIVERY CENTER IN INDIA...IBM significantly expanded its operations in the state of Uttar Pradesh with the inauguration of a new Global Delivery Center in Noida, India. This is IBM Global Business Services' first such center in Noida; and, in phase two of the expansion, IBM will open another center in the vicinity, which is expected to be fully operational by mid-2008. Both the centers will house close to 3000 employees once fully staffed.
ADP TOPS 100 LIVE BPO CLIENTS...ADP Employer Services has achieved a significant milestone for its Business Process Outsourcing (BPO) solutions, topping 100 live clients as of January 2008. In the past 12 months alone, ADP has implemented 34 new clients.
COMPUCOM ACHIEVES CERTIFICATION FOR TENTH YEAR...CompuCom Systems, Inc. announced that its Service Desk offering has achieved certification under the prestigious Service Capability & Performance (SCP) Certification program for the tenth consecutive year. CompuCom achieved certification in its Dallas and Canadian Certified Delivery Center locations in 2008. The SCP Standards quantify the effectiveness of client service based upon a stringent set of performance standards and best practices in the industry.
Posted by jbowles at 07:31 PM
New Business
Convergys Corporation has renewed an $80 million, four-year contract to provide customer care for a leading U.S. mass merchant, a Fortune Top 50 company. Under the terms of the contract renewal, Convergys will provide Customer Relationship Management support and perform double the volume of work for the client going forward. Convergys is providing live-agent and email support handling product and information requests, billing and payment inquiries, customer save functions, service installation assistance, product recall issues, and inbound and outbound lead generation campaigns.
Computer Sciences Corporation has received a $22 million modification to the National Aeronautics and Space Administration (NASA) Shared Services Center contract to provide additional support services to NASA employees at Stennis Space Center, Miss.
Pearson plc, the international education and information company whose businesses include the Financial Times Group, Pearson Education and the Penguin Group, has chosen Ness Technologies, Inc. as its product development partner in a three-year agreement that will expand Pearson's engineering capacity substantially. Ness will establish and operate an India Development Center in Mumbai for Pearson to enable close collaboration on end-to-end product engineering for Pearson's next-generation products and systems.
Capgemini has signed a five-year agreement with Tenneco Inc., one of the world's largest designers, manufacturers and marketers of emission control and ride control products and systems for the global automotive original equipment market and the aftermarket, to provide a range of applications management and development and asset management services.
Posted by jbowles at 07:24 PM
International News
Accenture will provide South West Water with customer-care and billing services and manage South West Water’s back-office operations under a 10-year outsourcing agreement the two companies signed recently. Under the agreement, Accenture will help South West Water enhance its technology, business processes and workforce performance to improve service levels for its customer base in Devon, Cornwall and parts of Dorset and Somerset counties in England while controlling service-delivery costs.
WM-data will be running core parts of the IT systems for one of Norway’s largest IT users, the Norwegian Department of Labour and Welfare, NAV. The contract covers the hosting and monitoring of more than 400 servers, data management and backup, consultancy regarding the change processes and reporting. This contract means an extension of existing contracts already covering products, onsite services and a general frame agreement for consultancy. NAV highlighted WM-data’s quality of services and its solid business model as the main reasons behind its choice of service provider.
In addition, as part of the contract win with the Department of Education in Oslo, WM-data will be running the joint IT systems for all of Oslo’s primary and secondary schools. The solution covers the running of more than 350 servers ensuring that all 170 schools in Oslo with more than 28,000 clients and 75,000 users have a high performing core infrastructure including desktop service, service desk, mail solution, firewalls with virus protection and the learning platform Fronter for all students.
Posted by jbowles at 07:24 PM
Outsourcing of Procure-to-Pay Processes Gains Traction as Companies Expand Their Focus beyond AP, Says Everest Research Institute
A new study by the Everest Research Institute revealed a strong link between successful accounts payable (AP) outsourcing and the move towards Procure-to-Pay (P2P) outsourcing. Nearly 50 percent of respondents to a recent executive survey conducted by the Institute indicated interest in exploring how to expand their current AP outsourcing initiatives to include a broader Procure-to-Pay (P2P) scope within the next year to three years.
Posted by jbowles at 07:17 PM
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Outsourcing Alert reaches 50,000 key decision-makers a week. For advertising information and rates, contact Peter Bowes. Tel: (508)668-6908 or send an email.
Posted by jbowles at 07:17 PM
