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April 30, 2008
Top Stories
ACS WINS 5-YEAR-EXTENSION FROM NIKE...Affiliated Computer Services, Inc. has been awarded a five-year contract extension to provide comprehensive information technology outsourcing services to NIKE, Inc., the world's leading designer, marketer and distributor of athletic footwear, apparel, equipment and accessories. Under the terms of the deal, ACS will supply end-to-end infrastructure services, including global datacenter, network, security, mainframe, midrange and messaging from strategically located ACS delivery centers in the United States, Asia and the Americas, including ACS' Northwest Regional Datacenter located in Hillsboro, Oregon. Additionally, ACS will provide services from NIKE datacenters located in Andover, Mass., Memphis, Tenn., and Hilversum, the Netherlands.
CONVERGYS REPORTS FIRST QUARTER...Convergys Corporation reported revenues of $716.4 million in the first quarter of 2008 compared with $719.9 million in the same period last year. EPS were $0.28. Operating income in the first quarter was $38.9 million compared to $65.2 million in the same period a year ago. The company confirmed its 2008 guidance of revenues of $2.85 to $3.0 billion and GAAP earnings of $1.31 to $1.36, per diluted share.
UNISYS REPORTS FIRST QUARTER LOSS...Unisys Corporation reported a loss of $23.4 million, or 7 cents per share, compared with a profit of $3.6 million, or a penny per share, in the year-ago period. The company's revenue dropped to $1.3 billion from $1.35 billion. Foreign currency exchange rates had an approximately 5 percentage-point positive impact on revenue in the quarter.
HEWITT ASSOCIATES ACQUIRES LCG...Hewitt Associates is expanding its suite of HR outsourcing solutions through the acquisition of LCG and its wholly-owned subsidiary, Disability Management Alternatives, LLC, an expert in employee absence management. Under the terms of the agreement, Hewitt will acquire LCG, which provides an array of integrated disability, leave and absence management solutions for mid- to large-sized employers.
CAPGEMINI NAMES NEW CMO... Christopher K. Williams has been appointed vice president and North America chief marketing officer (CMO) of Capgemini. Williams is responsible for leading the strategic positioning of the company, driving marketing and communication strategy and leveraging the company’s strong focus on innovation across the company’s consulting, technology and outsourcing services in North America.
Posted by jbowles at 06:16 PM
New Business
Symcor Inc., a North American leader in payment financial transaction processing and SunTrust Banks, Inc., one of the largest financial institutions in the United States, today announced they have signed an agreement under which a significant portion of SunTrust's back-office banking operations will be outsourced to Symcor. Under the terms of the 10-year agreement, Symcor will handle SunTrust’s check clearing, lockbox processing and statement production.
EDS has been awarded a seven-year, $391 million contract by the state of Georgia to design, develop and implement a new-generation Medicaid Management Information System (MMIS). The new system will provide fiscal agent and enrollment broker services and establish electronic health records (EHRs) for Medicaid recipients. The contract was awarded in the first quarter of 2008.
The Hertz Corporation has signed a five-year contract with ICG Commerce, a leading procurement services provider, for procurement outsourcing services to support Hertz’s broader efficiency improvement and reengineering efforts. Under the contract, ICG Commerce will provide comprehensive procurement outsourcing services for Hertz’s North American and European operations. These services will help Hertz drive greater control over expenditures in buying categories including professional services, equipment and automotive, facilities, transportation, IT, benefits and marketing.
Posted by jbowles at 06:16 PM
International News
Accenture has completed its acquisition of SOPIA Corporation, a privately held, Tokyo-based consulting and Information Technology solutions company specializing in Oracle systems integration. SOPIA is now part of Accenture in Japan.
Country Energy, manager of Australia’s largest power network, and IBM will work together to develop an intelligent utility network in Australia. Based on open standards, this digital system provides near real-time data and information that a utility can use to manage its grid, minimize outages, improve customer service, and source and deliver power more efficiently. It also allows customers to exert greater control over their power use.
Posted by jbowles at 06:16 PM
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Posted by jbowles at 06:15 PM
April 23, 2008
Top Stories
CSC ANNOUNCES $915 MILLION IN NEW CONTRACTS...Computer Sciences Corporation announced that since Jan. 1, its North American Public Sector (NPS) business unit has signed 71 previously unannounced contracts and subcontracts during its fiscal 2008 fourth quarter, which ended March 28. These contracts have a total estimated value of approximately $915 million if all contract options are exercised. The performance periods for the contracts range from one month to ten years. Civil agencies accounted for 31 awards with a total value of approximately $416 million. The Defense Department and its agencies accounted for 40 awards with a total value of approximately $499 million.
CSC LAUNCHES NEW HEALTHCARE SECTOR...Computer Sciences Corporation announced the launch of the company's new Healthcare Sector, a dedicated vertical business unit serving healthcare providers, health plans, pharmaceutical and medical device manufacturers and allied industries globally. Healthcare Sector offers clients onshore and offshore expertise with the major clinical information systems, claims processing systems and enterprise content management systems used by the healthcare industry. In addition, application management services and business process outsourcing
(BPO) offerings are supported from CSC's healthcare centers in Bangalore and Chennai, India.
TRINET ACQUIRES LMC RESOURCES...TriNet, a nationwide provider of human resources outsourcing services for small and medium-sized companies, has signed a definitive agreement to acquire the customer and other assets from LMC Resources, Inc., a Professional Employer Organization (PEO) based in Denver, Colorado. With this transaction, TriNet continues its strategy to augment the substantial organic growth it has experienced with acquisitions that strategically expand its customer base.
SAAS.COM ENTERS HRO SPACE...WebApps, Inc. a.k.a. SaaS.com, a leading provider of Software as a Service (SaaS) with a major push in Workforce Management Solutions, exhibited at the 2008 HRO World Conference, a human resources outsourcing (HRO) industry event. As a new member of the Human Resources Outsourcing Association (HROA), the primary association linked to the event, HRO World acted as SaaS.com’s debut into the HRO space.
Posted by jbowles at 07:24 PM
New Business
Sara Lee Corporation has renewed its infrastructure outsourcing services contract with HP for additional seven years and has extended management of operations in 10 countries to more than 35. As part of the new agreement, HP will supply Sara Lee with infrastructure outsourcing services, including central and local end-user support services. HP also will provide Sara Lee with data center and network services in Europe, the Middle East and Africa, Latin America and Asia.
Convergys Corporation has signed contract renewals and expansions with two leading financial services companies. Under terms of these renewed and expanded contracts, Convergys will provide additional live-agent support for on-going customer service, retention programs, and back office solutions, including multi-language customer care for client customers speaking Spanish, Cantonese, Korean, Japanese, Mandarin, and English. Cumulatively, the contracts are valued at more than $85 million over the next three years.
Posted by jbowles at 07:23 PM
International News
IBM Japan has signed an extension to its outsourcing contract with Mazda Motor Corporation to support the automaker's global operations. The agreement extends the previous contract for the December 1999 to May 2010 period by five years, and runs through 2015. The modified strategic outsourcing contract period will take effect in April 2008 for seven years through 2015. The new agreement differs from the original in that it covers not only the development, maintenance and operation of information systems, but also prioritizes human resources development to enhance Mazda's business and systems know-how. It will also strengthen the strategic relationship between the two companies.
Bharat Sanchar Nigam Limited (BSNL) has signed a multi-year licensing, support, and maintenance contract for Convergys’ Infinys rating and billing solution. BSNL will replace its legacy billing systems with the Convergys solution to reduce IT costs and to facilitate the introduction and deployment of new convergent services. BSNL is India’s largest and the world’s seventh largest telecommunications company providing a comprehensive range of telecom services.
Luxoft, a global provider of high-end software application and product development services to clients such as Deutsche Bank, Boeing, IBM, UBS and others, today announced it has opened a new delivery center in Ho Chi Minh City, Vietnam. The opening marks the first time an Eastern European software service provider has established a presence in Vietnam. It also makes Luxoft the first outsourcing provider in its region to offer a truly global delivery model.
Croydon Council has signed an extension to its IT outsourcing deal with Capgemini, worth an estimated £83m over five years. The new deal runs until 2013 and covers all the council's IT and telecoms infrastructure and networks, 4,000 desktop PCs and key business applications, including finance, procurement and customer service.
Posted by jbowles at 07:22 PM
Offshore Management of IT Infrastructure Hot, Traditional Outsourcing Still Dominates Market, According to Everest Annual Report
Remote Infrastructure Management Outsourcing (RIMO) continues to be the darling model of the sluggish Infrastructure Outsourcing (IO) market, according to the Everest Research Institute’s IT Infrastructure Outsourcing (ITO) Annual Report. Despite the overall IO market’s slow growth, predicted to crawl at a 4 percent (CAGR) growth pace over the next five years, RIMO adoption is growing at approximately 60 percent annually and is predicted to reach US $8.6 billion by 2010. Although RIMO’s adoption rate is soaring, RIMO only comprises one percent of the overall IO market with the slow-growing traditional solutions making up 75 percent of all infrastructure outsourcing arrangements.
To read more about the findings of the IT Infrastructure Outsourcing (ITO) Annual Report, an extract of the report is available at www.everestresearchinstitute.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.
Posted by jbowles at 07:21 PM
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Posted by jbowles at 07:20 PM
April 16, 2008
Top Stories
COMPUCOM ACHIEVES ISO 20000...CompuCom Systems has achieved International Organization for Standardization (ISO) 20000 certification, the international standard for IT Service Management (ITSM). Based on the adoption of Information Technology Infrastructure Library (ITIL) best practices, the ISO 20000 certification is one of many standards and framework components CompuCom follows and benchmarks the company’s industry-leading delivery of IT services. Currently, CompuCom is one of a select few companies registered in North America.
PROCUREMENT OUTSOURCING ON A 'SEE-SAW," EVEREST STUDY FINDS...Outsourcing of procurement functions is on a “see-saw” growth path fueled by an enhanced value proposition and strong movement towards global sourcing and offshoring, according to an Everest Research Institute study of the procurement outsourcing (PO) market. Companies signed fewer procurement outsourcing deals in 2007, a number slightly below the landmark 2006 figures; however, market growth was evident as managed, non-core PO spend crossed $50 billion (US) last year, according to the Institute’s study, Procurement Outsourcing (PO) Annual Report.
SCRIPPS TAPS ADP FOR HR SERVICES...The E. W. Scripps Company (Scripps) has selected ADP to provide comprehensive HR, payroll, benefits, pre-employment and related services to support its more than 9,000 employees. Scripps is a diverse media corporation with interests in national lifestyle cable networks, newspaper publishing, broadcast television stations, electronic commerce, interactive media, and licensing and syndication.
WNS ACQUIRES UK AUTO-INSURANCE PROCESSING FIRM... WNS(Holdings) Limited has acquired Call 24/7 Ltd., an auto insurance-claims-processing services provider in the United Kingdom. WNS will integrate Call 24/7 into WNS Assistance, a division of WNS Global Services Ltd. UK, and a subsidiary of WNS. The deal will enable WNS to extend its market leadership position in accident claims management in the UK.
TRIZETTO GROUP ACQUIRED; WILL GO PRIVATE...The TriZetto Group, Inc. has entered into a definitive agreement to be acquired and taken private by funds advised by Apax Partners, a growth-focused, global private equity firm with $35 billion in funds under advice and significant expertise in healthcare and technology. Under the terms of the agreement and plan of merger, TriZetto shareholders will receive $22.00 per share in cash, representing a 29% premium over the 30 calendar-day average closing price of the company’s stock. The transaction is valued at approximately $1.4 billion, including consideration for stock options and shares related to TriZetto's outstanding convertible notes. BlueCross BlueShield of Tennessee and The Regence Group, both customers of TriZetto, are providing a portion of the funding for the transaction and will be equity investors in the newly private company.
EQUIFAX BUYS RUSSIAN FOOTPRINT...Equifax Inc. has agreed to acquire a 28 percent equity stake in Global Payments Credit Services LLC (GPCS), a leading credit information company in Russia, from Global Payments Europe, s.r.o., a subsidiary of Global Payments Inc. (NYSE: GPN),and Home Credit and Finance Bank of Russia (Home Credit).
SATYAM WINS GLOBAL AWARDS...Satyam BPO, the business process outsourcing arm of Satyam's global business and IT services company, has won two prestigious Shared Services Excellence awards from the International Quality and Productivity Council. The company was honored in Orlando, Fla, during Shared Services Week, a conference organized by IQPC. Satyam BPO was a winner in the 'Best Business Process Outsource Provider' and the first runner-up in the 'Best Customer Service Delivery Framework' categories.
Posted by jbowles at 08:23 PM
New Business
The U.S. Department of Justice (DOJ) has awarded Unisys a contract to provide professional and technical services supporting the DOJ’s Asset Forfeiture Program (AFP), a nationwide law enforcement program that manages assets forfeited in the prosecution of criminals and criminal enterprises. Unisys is one of four companies to be awarded an indefinite delivery/indefinite quantity (IDIQ) contract.
Xerox Corporation has won a five-year blanket purchase agreement on an estimated $400 million U.S. Air Force contract for the placement of Xerox multifunction printers, network copiers and supplies. Xerox will provide technology and services to help the Air Force reduce expenses, consolidate equipment and achieve global standards in its document management operations.
Posted by jbowles at 08:23 PM
International News
The Flemish Public Employment Service (VDAB) agency has selected EDS as its new partner to manage its information communication technology (ICT) infrastructure. The contract has a six-year term and is worth approximately €50 million (US$74 million). Under the contract, EDS will provide a range of infrastructure services, including user support, user infrastructure management and maximum availability of the ICT environment for the agency's customers and partners. EDS will provide desktop support to more than 5,000 users in 200-plus locations and manage approximately 100 servers.
HP and BT have signed a contract with Nycomed, an international pharmaceutical company headquartered in Switzerland, to outsource its infrastructure services over the next five years. Nycomed engaged the BT HP Alliance to support its infrastructure, which must handle the rapid exchange of critical real-time information across international networks. Under the terms of the agreement, HP will manage Nycomed’s data centers, including more than 450 servers and 120 terabytes (TB) of storage and back-up facilities. HP will also deliver end-user workplace solutions for 10,000 workstations in more than 50 countries. Finally, HP will be responsible for a complete migration of 13,000 mailboxes to the new company standard, Microsoft Exchange 2007.
TRANSALLIANCE, a major European operator for transport and logistics markets based in Nancy, France, announced an agreement with IBM to host its servers, manage its information technology (IT) security and its databases. The four million euro contract will run for the next five years. IBM will provide IT governance for TRANSALLIANCE's companies as well as the management and administration of its entire IT infrastructure on two secured remote sites. The availability of a responsive IT system with on-demand storage capacity was a key factor in TRANSALLIANCE's decision.
Posted by jbowles at 08:22 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 08:22 PM
April 09, 2008
Top Stories
PEROT SIGNS $1 BILLION RENEWAL WITH HARVARD PILGRIM...Perot Systems Corporation and Harvard Pilgrim Health Care have extended their IT and Business Process Services Relationship through 2021. Under this new 13-year, $1 billion contract, Harvard Pilgrim will realize approximately $150 million of administrative cost savings over the life of the agreement through the consolidation and leveraging of technology, administrative functions and redesign of administrative operations. Perot Systems will operate and support Harvard Pilgrim's information technology infrastructure, business applications, and administrative business operations.
HP WINS 7-YEAR BPO DEAL WITH TRIBUNE PUBLISHING...HP has been awarded a seven-year business process outsourcing (BPO) contract with the Tribune Publishing subsidiary of Tribune Company, one of the United States’ top media companies. HP has already begun delivering a full scope of finance processes, including cash application, credit, collections and customer service, for many of Tribune Publishing’s advertisers. Additionally, HP is deploying applications to boost the value, efficiency and quality of the company’s business processes. The implementation of the contract will occur in phases, supporting seven of Tribune Publishing’s major metropolitan newspapers and the company’s related interactive websites. It is expected to be completed by summer.
CSC SIGNS MAJOR IT DEAL WITH CHRYSLER...Computer Sciences Corporation has signed a multi-year information technology (IT) services agreement with Chrysler LLC. Under the contract, CSC will provide mainframe, server and storage services for all of Chrysler’s worldwide locations. CSC will also provide applications support, maintenance and development services for a portion of Chrysler’s application portfolio. Financial terms were not disclosed.
EDS BUYS UK SECURITY SERVICES FIRM...EDS has acquired UK-based Vistorm Holdings Limited, a leading provider of information assurance and managed security services. Financial terms were not disclosed. Vistorm provides information assurance and managed security services in the UK and globally and serves organizations of all sizes, particularly commercial and financial services firms.
ACCENTURE STRENGTHENS GLOBAL DELIVERY NETWORK...Accenture has strengthened its systems integration and outsourcing capabilities for European clients with the integration of its delivery center in Casablanca into its Global Delivery Network. The Accenture Global Delivery Network comprises 76,000 professionals at numerous delivery centers and other Accenture and client locations around the world.
Posted by jbowles at 08:59 PM
New Business
Affiliated Computer Services, Inc. has been awarded a contract to provide business process outsourcing (BPO), information technology outsourcing (ITO), and customer care services for CAQH, the Council for Affordable Quality Healthcare. The multi-million dollar deal has a five and one-half year term with two one-year options, including a six-month implementation period. CAQH is a nonprofit alliance of health plans and trade associations collaborating on initiatives that simplify healthcare administration for health plans and providers, resulting in a better care experience for patients and caregivers.
Posted by jbowles at 08:58 PM
International News
MakeMyTrip, India's leading travel company, announced a strategic agreement with IBM to further enhance its customer service experience through process and technology innovation. The five-year contract for outsourcing contacts services to IBM Daksh will involve augmentation of MakeMyTrip's sales, customer service, and back office capabilities. MakeMyTrip recorded sales of Rs. 1,000 crores in F.Y.E March 2008, making it India's largest travel site, with a forty percent market share.
Computer Sciences Corporation has signed a four-year, $20 million information technology (IT) services agreement with the Danish Central Office of Civil Registration (CPR Office), located within the Ministry of Social Welfare Department. CSC will provide operation and maintenance support services for the CPR system, the Danish Civil Registration System that supplies public authorities and private sector companies with each Danish citizen’s basic personal information.
Posted by jbowles at 08:58 PM
Globalization and Sustainable Development in the Information Age
The Global Sourcing Council (GSC) at The Howe School of Technology Management, Stevens Institute of Technology, has announced the next meeting of the GSC, “Globalization and Sustainable Development in the Information Age” on Wednesday, April 16 at 4 pm at The Philippine Center, 556 Fifth Avenue, New York. The keynote speaker is Sarbuland Khan, Executive Coordinator for the UN Global Alliance for ICT and Development (UN G@ID), a partnership and network supported by the United Nations, which is actively pursuing the goal of a better, more peaceful world through the use of ICT as an instrument for overcoming poverty. In addition, Steve Kloeblen, Vice President, IBM will discuss the IBM World Development Initiative, which is focused on finding business opportunities for IBM in meeting the needs of people at the “base of the socioeconomic pyramid.” For more information, contact Sharen.Glennon@stevens.edu or visit http://howe.stevens.edu
Posted by jbowles at 08:57 PM
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Posted by jbowles at 08:57 PM
April 02, 2008
Top Stories
EDS SIGNS $1 BILLION DEAL WITH ROYAL DUTCH SHELL...EDS has signed a five-year, US$1 billion IT Master Services Agreement (MSA) with Royal Dutch Shell (Shell). Today's agreement with EDS is one of three IT outsourcing agreements between Shell and three key suppliers, (AT&T and a Deutsche Telekom unit won five-year contracts worth around $1.6 billion each to provide communications and technology services)and is expected to deliver Shell a substantial business improvement over the five year initial term of the contract. Under the terms of the agreement, EDS will manage Shell's end-user computing services including desktop, service desk, on-site services, back-up and disaster recovery, mobile information protection and managed messaging services, for 150,000 users in over 100 countries across its global operations. To reduce management complexity for Shell, EDS will also act as operational integrator, collaborating closely with Shell’s other key IT suppliers.
Posted by jbowles at 07:32 PM
New Business
The New York City Department of Information Technology and Telecommunications (DoITT) has awarded Accenture a new $79.6 million, three-year contract to provide technology and business process support to the Health and Human Services Connect (HHS-Connect) program.
EDS and Blue Cross Blue Shield of Arizona (BCBSAZ)have renewed their 20-year relationship. The five-year agreement for the MetaVance Administration and Finance System will allow BCBSAZ to continue to meet industry mandate terms and improve claims processing accuracy and speed, ultimately lowering costs and improving customer satisfaction for its providers and members. Financial terms of the agreement are not being disclosed.
Affiliated Computer Services, Inc. has been awarded a contract to provide business process outsourcing (BPO), information technology outsourcing (ITO), and customer care services for CAQH, the Council for Affordable Quality Healthcare. The multi-million dollar deal has a five and one-half year term with two one-year options, including a six-month implementation period. CAQH is a nonprofit alliance of health plans and trade associations collaborating on initiatives that simplify healthcare administration for health plans and providers, resulting in a better care experience for patients and caregivers.
Computer Sciences Corporation has been awarded a Software Engineering and Specialized Scientific Support blanket purchase agreement to provide information technology (IT) and information management services to the U.S. Environmental Protection Agency’s (EPA) Office of Research and Development (ORD). CSC estimates the value of the agreement, which has a one-year base period and six one-year options, to be $110 million if all options are exercised.
IBM Lender Business Process Services, Inc., , a wholly owned subsidiary of IBM, announced that Coastal Federal Credit Union has entered into a five-year contract whereby IBM will provide comprehensive private label mortgage loan fulfillment services. Coastal Federal Credit Union, based in Raleigh, NC, is a not-for-profit, member-owned, financial cooperative with nearly 172,000 members and approaching $2 billion in assets.
Posted by jbowles at 07:31 PM
International News
BT announced a £62 million, five-year outsourcing agreement with KPMG practices in the UK and Germany – which together form KPMG Europe LLP, the largest integrated accountancy firm in Europe. BT will assume delivery responsibility for services that include Wide Area Network (WAN), Local Area Network (LAN) refresh and management, deployment of Cisco IP Telephony, integration with an existing Microsoft Office Communications Server (OCS) platform, provision of managed video and audio conferencing, provision of fixed voice and management of existing Time-Division Multiplexing (TDM) telephony in the pre-transformed state.
IBM and Telefónica Argentina, Chile, Colombia y Perú have extended their information technology (IT) services contract. As part of the contract, IBM will operate and provide technical support for mainframe servers as well as a capacity backup upgrade for high availability and disaster recovery, until year 2011. IBM will provide server support at Telefónica Argentina, Chile, Colombia y Perú’s offices and from an IBM data center in Argentina.
Computer Generated Solutions, Inc. (CGS) announced that its long term services relationship between CGS Romania, a wholly-owned subsidiary, and AOL L.L.C., was recognized by FAO Research in a report published last week for having achieved value beyond initial contract expectations.
Compass BPO, a global organization providing F&A and IT outsourcing solutions announced that its submission to the FAO awards of Distinction has been nominated and is recognized in the category of Companies with greater than $5 million in Revenue. Compass BPO got a special mention as a company with a "FAO 2.0" FAO Research, annual awards of distinction recognizes outsourcing buyers and service providers collaborating to provide industry leadership in improving F&A operations for competitive advantage.
Posted by jbowles at 07:31 PM
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Posted by jbowles at 07:30 PM
