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July 30, 2008
Top Stories
CAPGEMINI TO ACQUIRE GETRONICS PINKROCCADE...Capgemini has reached an agreement in principle with Getronics PinkRoccade (GPR) for the acquisition of Getronics PinkRoccade Business Application Services BV (BAS BV). This division regroups GPR’s applications services activities (applications development, maintenance and management) in the Netherlands. Through this acquisition, Capgemini says it will reinforce its leadership position in one of its key markets, while developing a stable portfolio of long-term applications management contracts in the public sector. The acquisition amounts to an equity value of €255 million paid in cash on Capgemini own resources and should be finalized by the end of the year, subject to the approval of the European Commission and to the consultation of the relevant Workers Council.
UNISYS REVENUES DOWN, PROFITS UP... Unisys Corporation reported that its second-quarter 2008 operating profit increased to $22.6 million compared with an operating profit of $2.5 million in the year-ago period. Revenue for the second quarter of 2008 declined 3 percent to $1.34 billion from $1.38 billion in the year-ago quarter. Foreign currency exchange rates had an approximately 4 percentage-point positive impact on revenue in the quarter.
BIRALASOFT NAMES NEW CEO...J Ramachandran (Ram) has taken over as the Chief Executive Officer of Birlasoft. Ram joined Birlasoft in July 2006 and was currently serving as its Chief Delivery Officer. Prior to joining Birlasoft, Ram had been with IBM Global Services for 11 years. With
over 20 years of industry experience, Ram has a proven track record in the complete lifecycle of IT outsourcing and has led large value initiatives spanning multifarious industry verticals. He holds a masters degree from Indian Institute of Technology, Kanpur.
WIPRO IMPLEMENTS MICROSOFT DYNAMICS AX...Wipro Technologies, the global IT services business of Wipro Limited and Microsoft announced the successful implementation of Microsoft Dynamics AX at the Microsoft Business Solutions division. This project involved a transformational global Implementation serving 242 countries through five locations across the world, leading to standardization and harmonization of business processes across the organization.
COMPASS BPO INCLUDE IN FAO PUBLICATION...Compass BPO announced the inclusion of their case study in the FAO publication report on How to leverage Finance outsourcing. This report published by FAOresearch details 10 current outsourcing engagements and analyzes the critical factors driving successful attainment of contract goals to increase efficiency and address specific business pains.
CONVERGYS NAMED TO TRAININGOUTSOURCING.COM'S TOP 20... TrainingOutsourcing.com named Convergys to its fifth annual “Top 20” list among companies specializing in Business Process Outsourcing (BPO) in order to “create a more efficient marketplace for learning.” In addition, it continued to stress the importance of innovative methods in learning analytics and evaluation methods used to assess the impact of learning on business performance.
Posted by jbowles at 07:39 PM
New Business
Affiliated Computer Services, Inc. announced a renewed contract with the Apollo Group, Inc. providing student financial aid business process outsourcing (BPO) services for the University of Phoenix (UPX) and Western International University (WIU). The renewed three-year contract is valued at $120 million. The Apollo Group is the parent company of UPX and WIU, UPX is the largest private university in North America, and WIU is an affiliated university. ACS has been providing a host of BPO services for the Apollo Group since May of 2002.
Americo of Kansas City, Mo., has signed a 15-year contract for CSC’s business process outsourcing (BPO) services. Under the contract, CSC will manage a closed block of approximately 100,000 individual life and annuity insurance policies that Americo gained through the acquisition of Financial Industries Corporation (FIC). CSC will perform full back-office services, including end-to-end contract administration, a customer call center, financial reporting and payment processing. The new contract expands a 16-year relationship between the two companies during which CSC has provided application management and production support services for existing blocks of business.
Posted by jbowles at 07:38 PM
International News
Dutch airline Martinair has chosen Getronics and IBM to manage part of Martinair's IT organization. In terms of the five-year agreement, Getronics and IBM will manage part of Martinair's front and back office applications. From its Aviation Competence Center in Amsterdam, IBM will also help the airline to develop new services that will benefit its cargo and passenger customers. The joint contract is worth 23 million euro, of which IBM will receive 6 million euro.
Retail company neckermann.de has signed an eight-year IT service agreement with Atos Origin, a provider of management consulting and IT services. Under the terms of the agreement, Atos Origin has been entrusted with all neckermann.de's IT services including computing centre and desktop services as well as application development and user support.
Posted by jbowles at 07:37 PM
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Posted by jbowles at 07:35 PM
July 23, 2008
Top Stories
CONVERGYS POSTS SECOND-QUARTER INCREASE...Convergys Corp. posted second-quarter net income of $40.5 million, or 32 cents per share, up from $38.8 million, or 28 cents per share in the year-ago quarter. Revenues fell to $689.5 million from $707 million. For the first half of 2008, Convergys reported net income of $76.4 million, or 60 cents per share, versus $82.4 million, or 59 cents per share, in the same 2007 period. Revenues were down slightly, to $1.4 billion from $1.43 billion. The company said it expected full-year consolidated revenues at the lower end of its forecast of $2.85 billion to $3 billion, and earnings per share of $1.15 to $1.20.
LUXOFT ACQUIRES ROMANIAN OUTSOURCER...Luxoft, a global provider of high-end application and product development services, has acquired Bucharest-headquartered ITC Networks (ITCN), a leading Romanian software outsourcing provider specializing in the telecommunications industry. The combined company will have more then 3000 employees worldwide and an annual revenue run rate of over $150 million.
IBM OPENS EXCELLENCE CENTER IN PUNE...IBM has opened the IBM Service Management Center of Excellence in India which will act as the regional hub for IBM Tivoli service management software and strategy. The Center has been designed to develop specialized focus and skills in high value areas such as telecom, security, automation and asset management. This first of its kind Center has been established in Pune.
WNS DEAL WITH AVIVA (Corrected) ...WNS (Holdings) Limited (NYSE: WNS), a leading provider of global business process outsourcing (BPO) services, has entered into a transaction with Aviva, the world’s fifth largest insurance group with $95 billion revenue in 2007 to acquire Aviva’s offshore operations which run a number of its critical business processes for approximately £115 million ($228 million), subject to adjustments for cash and debt. Under agreement, which is of eight years and four months’ duration, WNS will be the long-term strategic BPO services provider to Aviva’s UK, and Canadian businesses--a deal that WNS estimates could generate approximately $1 billion in revenues over the life of the contract.
EVEREST RESEARCH SCHEDULES MSA WEBINAR...The Everest Research Institute will host a Webinar to discuss Master Service Agreement (MSA) and Service Description design for outsourcing engagements, why the MSA and Service Description structure is preferred, and best management practices that enable clients and suppliers flexibility when business needs change. The Webinar will be held on July 29 at 10 a.m. CDT. To register, please visit www.everestresearchinstitute.com/Events/Webinars.
Posted by jbowles at 07:22 PM
New Business
EDS has signed a seven-year agreement with the CAT Group, a worldwide provider of transport and logistics services, to develop, integrate, deploy and support the company's software applications. Financial terms were not disclosed. This contract builds upon an information technology (IT) infrastructure agreement CAT Group awarded to EDS in 2005. Under that agreement, which includes network management and governance and continues through 2015, EDS manages the CAT Group's entire IT infrastructure, which includes 2,000 work stations at 131 sites in 19 countries.
Affiliated Computer Services, Inc. announced a multi-year extended contract with the city of Riverside, California to provide information technology outsourcing to support the city's computer operations and geographic information services. The total value of the extended IT contract is $50 million, if all option years are exercised.
Posted by jbowles at 07:22 PM
International News
Logica, the European IT and business services company, has won a three year contract with global tyre manufacturer Michelin. Logica will be Michelin’s applications services partner for its Finance and Purchase Reporting Group, Supply Chain Management, Marketing and Sales (Customer Relationship Management) and Demand to Cash domains across Europe and North America. The contract, which has an option of being renewed for an additional three years, includes consulting services and systems implementation.
The UK subsidiary of Unisys Corporation has won an outsourcing contract worth approximately $USD 63 million (£GBP 32 million) to create and manage a public information network and security service until late 2012 for Kent County Council, the authority that governs the majority of the county of Kent in England. One of the largest county councils in the UK, Kent County Council is looking to enable cost-effective communications and collaboration among local government agencies, while providing new information services to residents. The network will initially connect approximately 1,100 public sector establishments, including schools, council offices and libraries.
CSC has extended its information technology (IT) outsourcing contract with Swiss bank Zuger Kantonalbank. The new, seven-year contract, which is valued at $33 million (34 million Swiss Francs) is an early renewal of a previous eight-year contract signed in 2002.
Banco Espírito Santo (BES), one of the major multi-specialist financial groups in Portugal and IBM announced a seven-year outsourcing services agreement for IBM to manage the bank's information technology (IT) infrastructure. The agreement, signed in June 2008, expands the scope of a previous contract signed in 2006.
Posted by jbowles at 07:21 PM
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Posted by jbowles at 07:21 PM
July 16, 2008
Top Stories
CONVERGYS ACQUIRES INTERVOICE FOR $335 MILLION...Convergys Corporation will acquire Intervoice for $335 million in cash or $8.25 per share. The consideration represents a premium of 24 percent to Intervoice’s closing stock price on July 15, 2008, the last trading day prior to the announcement of the agreement. Convergys expects the acquisition to be accretive beginning in 2009 on a non-GAAP basis, excluding amortization and one time costs. With its strong global brand, innovative technology, and large and loyal customer base, Intervoice is a leader in the software-based interactive voice response, contact center, and mobile messaging technology and applications markets.
WNS ACQUIRES AVIVA BPO; TAKES OVER $1 BILLION IN CONTRACTS...WNS Holdings has acquired Aviva Global Services, the UK-based insurance giant’s captive BPO in India and Sri Lanka, for $230 million. WNS Holdings will also take over $1 billion of contracts to be completed over eight years that Aviva's unit had won.
HCL ACQUIRES BRITISH BPO FIRM...HCL Technologies has agreed to acquire Liberata Financial Services (LFS), a UK-based business process outsourcing (BPO) firm, for an undisclosed amount. The acquisition of LFS, a wholly-owned subsidiary of Liberata Ltd, which provides end-to-end administrative and customer services for the life and pensions Industry, is expected to help HCL enter the British life and pensions industry.
ISS GOVERNANCE RECOMMENDS HP ACQUISITION OF EDS...ISS Governance Services (ISS) has published its report recommending that EDS stockholders vote to approve the Agreement and Plan of Merger under which EDS would be acquired by Hewlett-Packard Company. The company's special stockholders meeting regarding the vote is scheduled for July 31. ISS, a unit of RiskMetrics Group, is a leading independent proxy advisory firm whose voting analyses are relied upon by hundreds of institutional investment funds, mutual funds and fiduciaries.
SIG HELPS LEADERS STAY AHEAD OF THE PACK...At its Fall Leadership Summit, Sourcing Interests Group (SIG) will address global outsourcing issues and how leaders can stay ahead of the pack in tough economic times. Robyn Meredith, veteran journalist and author of The Elephant and the Dragon: The Rise of India and China and What It Means for All of Us, is the summit’s keynote speaker. Outsourcing leaders are invited to join an exclusive group, where topics such as outsourcing transition management, cutting-edge outsourcing practices, governance best practices, BPO / ITO case studies, and Eastern Hemisphere outsourcing alternatives will be discussed. SIG’s 34th Leadership Summit is September 24-26, 2008 at The Ritz-Carlton, Lake Las Vegas, NV. Register before August 1st to receive a free copy of Meredith’s book.
Posted by jbowles at 07:37 PM
New Business
CSC announced that the U.S. Department of Homeland Security (DHS) has awarded the company a task order to provide secure managed data center services. The contract has a six-month base period and six one-year options. A two-year option may be exercised in place of the sixth one-year option, bringing the estimated total contract value to $391 million.
Posted by jbowles at 07:36 PM
International News
IBM and Thanachart Bank Public Company Limited have signed a two billion baht (approximately US$60 million) agreement for a seven-year information technology (IT) Outsourcing Services contract to enhance the Thai bank's IT capacity, increase client satisfaction and address progressive growth with world class standards. The agreement also covers the delivery of services to Thanachart Group including Thanachart Securities Public Co. Ltd., Thanachart Fund Management Co. Ltd., Thanachart Life Assurance Co. Ltd. and Thanachart Insurance Co. Ltd.
BancTec, a global provider of complex business process automation solutions, has extended the reach of its BPO offerings through a new, ten-year agreement with EDB, one of the largest providers of IT services in the Nordic region. The BPO partnership agreement, worth more than $52 Million, includes the outsourcing of EDB's Document Imaging and Processing business to BancTec Sweden.
Logica is providing KPN with HR management information services. As part of this outsourcing contract five KPN employees will transfer to Logica’s offices in Rijswijk, The Netherlands. The 6.5 year contract has a value of € 2.8 million. Logica is now responsible for the management reports used by KPN’s HR managers, covering recruitment and attrition information and employee sickness leave.
Axel Springer AG is extending its existing outsourcing contract with Siemens IT Solutions and Services by another five years. Throughout Germany, Siemens operates and maintains around 12,000 computers and the corresponding software for one of Europe’s leading media companies.
Posted by jbowles at 07:36 PM
Everest Offers Free Outsourcing Quarterly Market Vista Report
The first issue of Market Vista, a new quarterly report on global outsourcing and offshoring activity and trend insights published by the Everest Research Institute, is available at no cost by request. To request a free copy of Global Sourcing Market Vista: Q1 2008, please visit www.everestresearchinstitute.com.
The Market Vista reports provide data and analysis across multiple dimensions, including deal trends in the outsourcing and offshoring market; captive model analysis including new center announcements, expansion and divesture; current and emerging location analysis including risks and opportunities and government initiatives; key supplier developments including transaction activity, changes in delivery footprint, M&A and alliance activity; and analysis of key developments across the top 20 financial services companies globally. The Q1 2008 Market Vista report features focus analyses of Eastern European cities and the Chinese supplier landscape.
Posted by jbowles at 07:34 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 07:34 PM
July 09, 2008
Top Stories
CSC SIGNS $150 MILLION DEAL WITH EXELON...CSC has signed an information technology (IT) services agreement with Exelon Corporation, one of the nation’s largest electric utilities. The contract, which has a five-year base period, and three one-year options, is valued in excess of $150 million. CSC will provide Exelon with a broad spectrum of infrastructure support services, including help desk, desktop support, database administration, telecommunications and data network support, and server management services. Work will be performed at various locations in the U.S. as well as CSC’s World Sourcing delivery centers in Malaysia and India.
ACCENTURE OPENS NEW DELIVERY CENTER IN DELHI...Accenture has expanded its Global Delivery Network with the opening of the Accenture delivery center in Noida in the National Capital Region of Delhi, India, strengthening the outsourcing capabilities it provides to clients globally. The delivery center in Noida offers cross-industry BPO services in finance & accounting, human resources, learning, procurement and customer care, as well as industry-specific services focusing on the insurance, healthcare, pharmaceutical and utility industries.
EVEREST OFFERS NEW OUTSOURCING SUPPORT SERVICES...To help companies leverage and extend their expertise, Everest’s Outsourcing Support Services includes a full menu of tools, decision support, and training & workshops. These services are designed to help companies gain many of the benefits an outside sourcing advisor – without committing to a team of full-time consultants. A link to the complete OSS Offering and Price List can be found here.
NEW SOLUTION FROM VENGROFF, WILLIAMS...Vengroff, Williams & Associates, Inc., a global provider of receivables management and business process outsourcing solutions, announced a new low-cost in country solution for small to midsized corporations. The new solution, called Source MPO, provides fast-growth global companies with access to vast industry and business process expertise With best-of-breed technology and services to achieve critical business objectives such as optimal business performance, increased revenue, and productivity.
Posted by jbowles at 07:05 PM
New Business
Unisys Corporation announced that its Canadian subsidiary, Unisys Canada, has won a contract from NEC Corporation of America to provide outsourced IT support services for 470 7-Eleven® retail convenience stores throughout Canada. The Unisys contract is valued at approximately $USD 6 million over a three-year term. NEC Corporation of America is the prime contractor in the engagement, managing applications development and support for 7-Eleven, Inc.
CSC has signed a new information technology (IT) outsourcing contract with Urenco, a leading supplier of enriched uranium to nuclear power utilities worldwide. The new six-year agreement, which is valued at $22 million (£10.9 million), follows a seven-year, $45 million (£23 million) IT outsourcing contract Urenco awarded to CSC in March 2007.
Posted by jbowles at 07:04 PM
International News
IBM has signed two strategic outsourcing contracts in emerging markets of South America. In Venezuela, Banco Fondo Comun (BFC), a universal bank offering its customers leading customer service through its more than 170 national branches, signed a five-year agreement with IBM. The agreement with BFC includes the following information technology services: data center outsourcing, technical support and database management operations, the infrastructure of IBM's Business Innovation Center (BIC), planning services, and computer hardware relocation.
In Brazil, Panarello, a leading distributor of healthcare products, with 93% of the potential market of this segment, has expanded the scope of its outsourcing agreement with IBM and signed a new contract for a ten-year term. In 2004, the company transferred the responsibility of managing its IT infrastructure to IBM. Through a contract expansion, Panarello will integrate the group's financial, human resources, legal and procurement processes. The company expects significant cost reduction as a result of the implementation of a shared services model and the integration of its entire IT infrastructure.
Siemens IT Solutions and Services will take over operation of the IT facilities for the Berlin-based nonprofit housing development and construction company GSW Immobilien GmbH. The order has a TCV of 13 million euros and is set to run for five years.
Logica has signed five important outsourcing contracts in Sweden in the last months. The new customers include UC, Sweden's largest business and credit information agency; De Lage Landen International BV, a global provider of leasing, business and consumer finance solutions; Ålö AB, a world leading manufacturer of front loaders and the municipality of Boden in the North of Sweden. In addition, Logica has recently signed an outsourcing contract with Danish home furnishing chain ILVA, to manage and monitor the operation of all of ILVA’s IT-platforms.
Posted by jbowles at 06:59 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 06:58 PM
July 01, 2008
Top Stories
ACCENTURE REPORTS STRONG THIRD QUARTER...Accenture reported strong financial results for the third quarter of fiscal 2008, ended May 31, with net revenues of $6.10 billion, a year-over-year increase of 20 percent in U.S. dollars and 12 percent in local currency and the highest quarterly net revenues in the company’s history. Consulting and outsourcing revenues were both quarterly records, growing by double digits in U.S. dollars and local currency. Earnings per share were $0.74, the highest for any quarter in the company’s history and an increase of 36 percent over the third quarter of fiscal 2007, driven largely by strong growth in revenue and operating income. In addition, the company has again raised its outlook for earnings per share for the full fiscal year 2008, to a range of $2.63 to $2.65 from its previously guided range of $2.55 to $2.60.
COMPUCOM ACQUIRES GETRONICS N.A. OPERATIONS...CompuCom Systems, Inc. has entered into a definitive agreement to acquire the North American operations of Getronics, a global provider of IT services. The combined entity would have had pro-forma 2007 revenues of approximately $2.1 billion. Getronics’ North American activities consist of the operations in the United States, the operations in Canada and the certified Global Service Centre in Mexico, for a combination of cash and equity issued by CompuCom.
EVEREST, BERNSTEIN WEBINAR ON IT OUTSOURCING...The strategic dilemma facing Infrastructure Outsourcing (IO) suppliers – caused by the convergence of ‘traditional’ (multinational) and offshore suppliers’ value propositions, a maturing remote infrastructure management delivery model, and adoption of labor arbitrage by traditional suppliers – will be discussed in a one-hour Webinar hosted by analysts from the Everest Research Institute and Sanford C. Bernstein & Co. During the last decade, the emergence and rapid growth of new models of infrastructure services delivery, such as Remote Infrastructure Management (RIMO) and Information Management Services (IMS), are showing signs of convergence with more traditional ways of delivering infrastructure service. The Emerging Supplier Dilemma in the Remote Infrastructure Management Market report will be discussed in a one-hour Webinar on July 10 (10 a.m. CDT; 11 a.m. EDT).
GENPACT VP NAMED THOUGHT LEADER...Genpact Executive Vice President VN “Tiger” Tyagarajan was named Thought Leader of the Year by FAO Today magazine. This is the second consecutive year that Tyagarajan has been recognized by the publication for his outstanding contributions to Genpact and to the global finance and accounting outsourcing industry.
Posted by jbowles at 07:23 PM
New Business
EDS has been awarded a $42.8 million, four-and-a-half year contract by the Ohio Department of Taxation to modernize the Ohio State Tax and Revenue System. The new State Taxation Accounting and Revenue System (STARS) will simplify and streamline tax services to Ohio’s citizens and collect state taxes more efficiently. EDS’ U.S. state and local government subsidiary, Saber Government Solutions, will provide the contract services and solutions.
The U.S. Department of Justice (DOJ) has awarded Unisys three task orders to provide professional and technical services – including investigative services, training, and program analysis – in support of the DOJ Asset Forfeiture Program (AFP). The task orders, part of a $475 million multi-vendor, indefinite delivery/indefinite quantity Professional Assistance Contract 2 (PACS 2) awarded in March 2008, enable Unisys to continue and expand its longstanding support of the DOJ and its enforcement efforts.
CSC has signed a new information technology (IT) outsourcing contract with aircraft manufacturer Hawker Beechcraft Corp. The nine-year agreement is an extension of services that began in 2002. Under the new contract, CSC will continue to manage Hawker Beechcraft's IT infrastructure, including midrange computers and desktops, help desk operations, IT security, engineering computing, voice and video telecommunications, servers, and local- and wide-area networks. CSC will provide these services for Hawker Beechcraft's operations globally.
The U.S. Centers for Medicare & Medicaid Services (CMS) has awarded EDS subsidiary, NHIC, Corp., a $148 million contract to administer Part A and Part B Medicare claims payments to health care providers in four northwestern states. The contract is for one year with four 1-year options and will serve approximately 54,000 physicians and practitioners and 233 Medicare hospitals within Alaska, Idaho, Oregon and Washington.
Posted by jbowles at 07:22 PM
International News
Storebaelt Ltd., the company managing the toll bridge connecting central parts of Denmark, has signed a three year agreement with IBM for IBM to manage Storebaelt's information technology (IT) infrastructure and services. The Great Belt Fixed Link, opened in 1998, is the largest engineering project in the history of Denmark. The Link consists of a 6,790 meter long suspension bridge linking Zealand -- where the Danish capital Copenhagen is located -- and the small island of Sprogoe, a 6,611 meter combined rail and road bridge between Sprogoe and Funen, and a 8,000 m rail tunnel between Zealand and Sprogoe. At 254 meters above sea level, the East Bridge's two pylons are the highest points in Denmark.
HP has signed a five-year contract with Ericsson to provide global IT outsourcing services. HP Services will provide solutions based on HP's Adaptive Enterprise strategy, designed to help companies measure, architect and manage change by creating a tighter linkage between business and IT. HP Services will take responsibility for Ericsson's global IT infrastructure and will consolidate and optimize their IT environment.
Posted by jbowles at 07:22 PM
Everest Offers Free Outsourcing Quarterly Market Vista Report
The first issue of Market Vista, a new quarterly report on global outsourcing and offshoring activity and trend insights published by the Everest Research Institute, is available at no cost by request. To request a free copy of Global Sourcing Market Vista: Q1 2008, please visit www.everestresearchinstitute.com.
The Market Vista reports provide data and analysis across multiple dimensions, including deal trends in the outsourcing and offshoring market; captive model analysis including new center announcements, expansion and divesture; current and emerging location analysis including risks and opportunities and government initiatives; key supplier developments including transaction activity, changes in delivery footprint, M&A and alliance activity; and analysis of key developments across the top 20 financial services companies globally. The Q1 2008 Market Vista report features focus analyses of Eastern European cities and the Chinese supplier landscape.
Posted by jbowles at 07:22 PM
Advertising
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 07:19 PM
