« September 2008 | Main | November 2008 »
October 29, 2008
Top Stories
CONVERGYS REVENUES DOWN IN THIRD QUARTER...Convergys reported consolidated revenues of $676.2 million, down 3.9 percent from the $703.7 million it achieved in the same period last year. The net loss of $140 million, or $1.15 per diluted share, was down sharply from last year’s third quarter, when the company reported a profit of $41.8 million, or 30 cents per share. The quarterly results included a pretax writedown of $272.9 million related to human-resources management contracts. Excluding the one-time charge, Convergys would have posted profits of 29 cents per share, ahead of the 25 cents expected by analysts.
UNISYS NAMES VP, OUTSOURCING GLOBAL OPERATIONS...Unisys Corporation has appointed William L. Bancroft vice president and general manager, IT Outsourcing Global Operations. In this role he will report to Tony Doye, president, Unisys Global Outsourcing and Infrastructure Services. Bancroft will oversee the strategic direction and implementation of Unisys information technology (IT) outsourcing service line, including the planning, architecture, integration and delivery of client solutions. He will have responsibility for cost-effective delivery of both managed services and technology support and maintenance services, driving innovation and global consistency in the use of tools, processes and industry standards. Most recently, Bancroft served as vice president and general manager, IT Outsourcing Operations, North America for Unisys. Prior to joining Unisys, he held executive positions in outsourced IT services delivery with CSC, GE Capital and IBM.
PEROT SYSTEMS BUILDING NEW FACILITY IN NEBRASKA...Perot Systems Corporation launched construction of its new office facility in Lincoln today at groundbreaking ceremonies at the University of Nebraska Technology Park. The new facility, developed by KDC, is one of the largest private construction projects seeking Leadership in Energy and Environmental Design (LEED) certification in the state. The majority of Perot Systems current Lincoln workforce, which totals approximately 1,000 associates, will be housed in the new facility. Construction of the project is expected to be complete by the third quarter of 2009 and will make Lincoln one of Perot Systems' largest U.S. employment locations. Perot Systems plans to begin hiring additional employees for up to 150 new high tech positions in Lincoln.
INSPIRA INTRODUCES ENTERPRISE 2.0 SUITE..The emergence of social networking has created new opportunities for enterprises to engage their employees, partners and customers, often leaving decision makers with more choices than answers. Inspira has introduced the Enterprise 2.0 solution that takes Social Media Web 2.0 technologies and adapts them for innovation and productivity in the enterprise.
Posted by jbowles at 06:06 PM
New Business
CSC announced that the company had an estimated $4.3 billion in previously unannounced business orders and awards across its three primary lines of business during CSC’s fiscal 2009 second quarter ended Oct. 3, 2008.
Posted by jbowles at 06:05 PM
International News
Finanz Informatik (FI), the newly-shaped information technology (IT) service provider of the Savings Banks Financial Group in Germany, has signed a comprehensive five-year extension of its strategic contract with IBM focused around streamlining FI into a new enterprise data center to help lower technology costs, reduce energy consumption, and improve overall IT performance. The contract includes IBM hardware, software and services worth triple-digit million Euros and will help Finanz Informatik to further develop and extend their services to their clients within the German Savings Banks Organization based on FI's core banking solution OSPlus.
Atos Worldline was selected by French bank LCL to develop, build, run and host a secure banking Web 2.0 messaging service dedicated to client-advisor interaction. Through the development of this innovative, secure and confidential communication channel, Atos Worldline is supporting one of the leading French bank to strengthen and widen its already existing client communication channels. The service targets a specific group of clients who have subscribed to the secure, on-line banking site LCL Interactif.
Posted by jbowles at 06:05 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 06:02 PM
October 22, 2008
Top Stories
EVEREST: ECONOMIC CRISIS DRIVING IT OUTSOURCING M&A ACTIVITY...The slowdown of the US economy, convergence of market models for infrastructure outsourcing, and Indian suppliers' move up the ADM value chain are likely to have the most profound effects on merger and acquisition activity in the IT outsourcing (ITO) sector, according to the Everest Research Institute. The Institute study, Plugging the Gaps -- Mergers and Acquisition in IT Outsourcing, includes analysis of IT Outsourcing market changes and trends driving M&A activity, examines 114 recent M&A engagements, and leverages the Institute's database of 300 tracked captives to analyze drivers of M&A in ITO and forecast likely future acquirers and targets.
To read an extract of the Plugging the Gaps -- Mergers and Acquisition in IT Outsourcing, purchase the report, or inquire about other research services, please visit the website, email info@everestresearchinstitute.com or call +1-214-451-3110.
TATA NET RISES MODESTLY...Tata Consultancy Services Ltd., India's largest software exporter, reported that net income rose 1.2 percent to 12.6 billion rupees ($256 million), or 12.89 rupees a share, in the three months ended Sept. 30 from 12.5 billion rupees, or 12.74 rupees, a year earlier. During Q2, there was a gross addition of 9,682 employees (net 5,328) of which 6,673 were trainees and 1,587 were lateral recruits in India and 1,422 employees were added in overseas subsidiaries and branches. The total employee base is 121,610 professionals and 52% of the workforce has more than three years experience.
EDS EXPANDS MULTIVENDOR MANAGEMENT SERVICES...EDS announced the expansion of its Contact Center Managed Services to include features that integrate people, processes and technology, enabling clients to manage multiple vendors and improve the customer experience. The Multivendor Management (MVM) capabilities, an expansion of the company's Customer Relationship Management (CRM) Services, provide a framework for successfully governing multiple service providers in complex contact center environments. The company says that by addressing the challenges companies face when delivering a consistent customer experience across multiple locations, business or product groups, and contact center service providers, MVM can reduce costs, improve revenue, increase customer satisfaction and ultimately deliver a consistent customer experience.
MAHINDRA AWARDED HIGHEST HBS AWARD...Anand G. Mahindra, vice chairman and managing director of the Indian multinational Mahindra & Mahindra was among five distinguished graduates upon whom Harvard Business School conferred its highest recognition, the Alumni Achievement Award, as part of its Centennial Celebration. The other honorees were John Doerr, a partner in the venture capital firm Kleiner Perkins Caufield & Byers; Jeffrey R. Immelt, chairman & CEO of General Electric; Meg Whitman, former president & CEO of eBay; and James D. Wolfensohn, former president of the World Bank.
API OUTSOURCING LAUNCHES ENHANCED FAO PRODUCT...API Outsourcing, Inc., a leading finance and accounting outsourcing (FAO) provider of document management, accounts-payable processing solutions and billing, has launched API's Archive Link Service, a new service will enhance customers' ability to seamlessly retrieve and view their archived documents stored on API's document archive systems. This new service utilizes technology which will make document retrieval easy and efficient through any clients' ERP system. API has already implemented this service for a number of its customers with a variety of ERP systems.
Posted by jbowles at 07:27 PM
New Business
EDS, an HP company, and global medical device company ConvaTec have signed a $95 million information technology (IT) services agreement. Under the new five-year agreement, EDS will manage ConvaTec's IT infrastructure and communications network, enabling the company to accelerate growth in the wound therapeutics, critical care and ostomy care markets.
The U.S. Army’s Program Executive Office, Command, Control and Communications Tactical (PEO C3T) has awarded CSC a task order to provide engineering, architecture, integration and readiness support services. The task order, which was competitively awarded under the Rapid Response Program government-wide acquisition contract, has a two-year base period and an estimated total contract value of $88 million. This contract was awarded to CSC during the company’s second quarter fiscal year 2009.
IBM has signed a global IT Services contract with Arrow Electronics, Inc. IBM will manage Business-to-Business integration for Arrow, extending an existing contract signed in 2003. The new agreement was signed on September 29, 2008.
Posted by jbowles at 07:27 PM
International News
IBM announced a seven-year agreement with Van Lanschot Bankiers. The IBM contract covers infrastructure services including helpdesk, end user computing, network, telecom, mainframe, data center and transformation services using IBM's global delivery model. Van Lanschot Bankiers is the oldest independent bank in the Netherlands with a focus on high net-worth individuals and entrepreneurs.
Posted by jbowles at 07:26 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 07:23 PM
October 15, 2008
Top Stories
IBM IS #1 IN GLOBAL APPLICATIONS OUTSOURCING MARKET...Industry analyst firm IDC has ranked IBM the worldwide leader in the application management services (AMS) market over Accenture, EDS and all Indian-based firms based on combined bundled and discrete services revenue in 2007. According to IDC estimates, IBM held a significant combined lead in application management services reflecting the company's historical growth and flexibility in evolving an application management practice that supports discrete and embedded application management solutions.
ARICENT NAMES EX-WIPRO EXEC CEO...Aricent, a global innovation, technology and outsourcing company focused exclusively on the communications industry, named Sudip Nandy as Chief Executive Officer. Nandy will also be appointed to the Board of Directors upon his arrival in October. Aricent's former CEO Ash Bhardwaj has resigned to pursue other interests. Previously, Nandy was the President of the Technology Media and Telecom Business Unit at Wipro, overseeing more than 18,000 people and a revenue run rate of US $1.3 billion per annum.
ACS PILOTS DISABILITIES PROGRAM...To seek out the best employees to serve its worldwide clients, Affiliated Computer Services, Inc. (ACS) today announced it has successfully recruited more than 135 people with disabilities in a pilot project designed to attract more Americans with disabilities. Since March, ACS has worked with approximately 300 different agencies that support people with disabilities who refer appropriate candidates to ACS for possible hiring.
Posted by jbowles at 07:01 PM
New Business
CSC has signed a new information technology (IT) outsourcing contract with very light jet manufacturer Eclipse Aviation. The new agreement has a five-year base period and three one-year options, bringing the estimated total eight-year contract value to $106 million. Under the new contract, CSC will manage Eclipse Aviation’s applications development and maintenance, and 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 Eclipse Aviation’s operations globally.
IBM announced a three-year contract renewal of mainframe and midrange hosting services for Bristol-Myers Squibb (BMS). The agreement with IBM will allow Bristol-Myers Squibb to continue benefiting from applications running on System z mainframe and midrange systems as well as business recovery services for BMS's mission critical systems. Under the agreement, IBM will provide systems monitoring and management, back-up, disaster recovery, audit support, architectural guidance and project management for the continued use and streamlining of these systems.
Saber Government Solutions, a non-healthcare U.S. state and local government subsidiary of EDS, has been awarded a $24 million contract to develop and design the new tax system for the Washington Employment Security Department (WA ESD). The Next-Generation Tax System will replace the state's antiquated TAXIS/WAGES system, which supports the unemployment insurance (UI) tax program. The UI tax program provides benefits from the UI Trust Fund to those who are temporarily unemployed.
Crestline Hotels & Resorts has selected ADP to provide its Comprehensive Outsourcing Services(COS) to Crestline's 7,000 employees as their human resources (HR) business partner. As one of the nation's largest independent hospitality management companies, Crestline Hotels & Resorts currently manages 70 hotels, resorts and conference and convention centers with nearly 14,600 rooms in 14 states and the District of Columbia.
Posted by jbowles at 07:01 PM
International News
Indian Telecom Bharti Airtel announced a strategic outsourcing agreement with IBM to further enhance its customer service experience for its top-end platinum customers through process and technology innovation. The six-year Q3 contract for outsourcing contact services to IBM's Managed Business Process Services (MBPS) unit would involve augmentation of Airtel's sales, customer service, and back office capabilities.
Posted by jbowles at 07:01 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 06:58 PM
October 08, 2008
Top Stories
TATA ACQUIRES CITIGROUP'S INDIA BPO OPERATIONS...Tata Consultancy Services will acquire all of Citi’s interest in Citigroup Global Services Limited (CGSL), the India-based captive business processing outsourcing (BPO) arm of Citi for an all-cash consideration of approximately $505 million, subject to closing adjustments. In addition to the sale, Citi has signed an agreement for TCS to provide, through CGSL, process outsourcing services to Citi and its affiliates in an aggregate amount of US$2.5 billion over a period of 9.5 years. The agreement builds upon the existing relationship between Citi and TCS whereby TCS provides application development, infrastructure support, help desk and other process outsourcing services to Citi.
CGSL is one of the largest providers of business processing outsourcing services within the banking and financial services sector, providing end-to-end process management across the BFS spectrum and a broad array of services to Citi’s consumer, corporate and global wealth management businesses world wide. CGSL has more than 12,000 employees located in India and expects to generate revenues of approximately $278 million in 2008.
UNISYS NAMES COLEMAN CEO AND CHAIRMAN...Unisys Corporation's Board of Directors has elected J. Edward (Ed) Coleman, 57, as the company’s new chief executive officer, effective immediately. Coleman’s election includes both the Unisys chairman and CEO roles. Henry (Ric) Duques will relinquish his non-executive Chairman title but become lead director on the Board. Coleman succeeds Joseph W. McGrath as Unisys CEO. The company announced last month that McGrath was stepping down as president and CEO. A 30-year veteran of the IT industry, he has led significant transformational and business expansion efforts at such companies as Gateway, CompuCom, and Arrow Electronics Enterprise Computing Solutions Group.
CONVERGYS ACQUIRES CEON CORPORATION...Convergys Corporation is expanding the breadth of its Business/Operations Support Systems (BSS/OSS) solutions available to clients through the acquisition of Ceon Corporation, an innovative leader in the development of product lifecycle management and multi-play fulfillment software for communications service providers.
3FORWARD INTRODUCES NEW GLOBAL ALLIANCE OFFERINGS...3forward, a Dallas-based growth services firm specializing in sales, marketing and alliances for outsourcers, BPOs and IT companies, has introduced new offerings to accelerate the creation of Global Service Delivery Alliances. These programs are designed for outsourcers, BPOs and IT companies seeking to expand existing capabilities and coverage by creating, formalizing or strengthening partner delivery models.
Posted by jbowles at 07:10 PM
New Business
IBM announced it has signed a four-year, information technology (IT) outsourcing agreement with NV Energy, the electric utility for most of Nevada. As part of the agreement, IBM will supply mainframe management services to help NV Energy control costs and better provide services for its business users. Financial details were not disclosed.
Affiliated Computer Services, Inc. is extending its relationship with United Technologies Corp. with a renewed finance and accounting contract valued at $41 million over three years. The extended contract calls for ACS to continue providing domestic finance and accounting (F&A) services, including accounts payable, travel and expense reporting, payroll and related accounting functions, to United Technologies Corp. (UTC), a diversified provider of high technology products and support services to the building systems and aerospace industries.
Posted by jbowles at 07:10 PM
International News
Accenture has signed a five-year, multi-million-dollar application outsourcing contract with Telstra, Australia’s largest telecommunications provider, to maintain Telstra’s customer care and billing platform, which Accenture helped design and deploy. Under terms of the contract, Accenture will be responsible for the ongoing management of the platform and ensuring that it operates effectively through further migrations and software releases.
EDS has signed an agreement with Posten, one of the Nordic region’s largest messaging and logistics operators, to host the company’s end-user computing environment. The contract will begin in July 2009. Financial terms were not disclosed. The agreement encompasses all workplaces within the Posten group, including Posten Meddelande AB, Posten Logistik AB and Strålfors. Under the agreement, EDS will host information technology workplaces, including desktop, email, service desk and other standardized services.
India-based Salient Business Solutions announced the creation of its U.S.--based division, Salient Business Solutions USA, Inc., headquartered in New York. The creation of the U.S. division enables Salient to establish a U.S. presence and provide customers with a domestic origination and delivery team, as well as local accountability.
Posted by jbowles at 07:10 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 07:09 PM
October 01, 2008
Top Stories
DEADLINE FOR OUTSOURCING EXCELLENCE AWARDS IS OCTOBER 15...The nomination deadline for Outsourcing Center’s annual Outsourcing Excellence Awards, which honor the most distinguished outsourcing relationships worldwide, is October 15, 2008. Everest Group and Forbes sponsor the Awards competition, which began in 1997. The industry has christened the event the “Oscars of Outsourcing.”
The coveted awards recognize outstanding examples of successful buyer-supplier outsourcing relationships in several categories, including Best Partnership, Best First Steps, and Most Strategic. An independent judging panel of industry experts evaluate each nomination on criteria that include the relationship’s mutual benefits, effectiveness, and business outcomes achieved.
ACCENTURE REPORTS RECORD RESULTS...Accenture reported strong financial results for the fourth quarter and record results for the full 2008 fiscal year, ended Aug. 31, 2008, including its highest-ever annual revenues, earnings per share, bookings, operating income and cash flow. For the fourth quarter, revenues before reimbursements were $6.00 billion, compared with $5.11 billion for the fourth quarter of fiscal 2007, an increase of 17 percent in U.S. dollars and 10 percent in local currency. Diluted earnings per share for the quarter were $0.67, compared with $0.50 in the same period last year, an increase of 35 percent. For the full fiscal year, net revenues were a record $23.39 billion, compared with $19.70 billion for fiscal 2007, an increase of 19 percent in U.S. dollars and 11 percent in local currency. Diluted earnings per share for the full year were $2.65, compared with $1.97 in fiscal 2007, an increase of 35 percent.
IT CONSULTING DRIVERS HAVE CHANGED--EVEREST/BERNSTEIN...Fundamental changes in the drivers of the IT consulting market have ushered in a new market paradigm -- manifested by healthy demand, lessened economic sensitivity, and central roles for globalization and offshoring. The shortage of IT talent in developed countries and the growing sophistication of offshore IT labor markets are supporting healthy growth in the IT consulting market, according to a market analysis and survey of 15 IT consulting companies by the Everest Research Institute and Bernstein Research. To read more about the findings of the Reading the Alphabet Soup: SI, PI, ERP, etc. -- The Changing Drivers of IT Consulting and other IT Outsourcing research studies, an extract of the report is available at www.everestresearchinstitute.com.
Posted by jbowles at 06:57 PM
New Business
CGI Group Inc. has signed a three-year, multi-million dollar contract renewal with Medi-CareFirst BlueCross BlueShield to provide business process outsourcing services. As part of the three-year agreement, CGI will continue to manage Medi-CareFirst’s Medicare Part D Member Call Center, member enrollment, billing services and provide document management services from CGI’s facility in Ft. Worth, Texas. Over the last three years, CGI and Medi-CareFirst have developed and implemented a number of initiatives designed to improve member satisfaction. The results have been a reduction in the number of Prescription Drug Errors (PDEs) and a transition to a Per Member Per Month (PMPM) pricing model that is intended to help Medi-CareFirst better predict costs.
Posted by jbowles at 06:44 PM
International News
British Airways, the UK’s premier airline has signed a multi-million-pound deal NIIT Technologies Limited. The three-year deal enables the support and testing of business critical applications across various business areas of the global airline.
CSC has signed a new information technology (IT) services contract with the UK’s Royal Mail to deliver a national mobile service to 25,000 delivery vehicles in its letters and parcels operation. The CSC-led team includes Blackbay, a provider of mobile workforce solutions. The service will enable Royal Mail to provide increased quality of service to customers by allowing them to view the status of their tracked deliveries in near real time via the Web. It will also enable replacement of current paper-based systems for the majority of tracked items.
Adivent, a European sales outsourcing company focused on the telecom market, announced that Aethra, a leading player in the global telecommunications marketplace, has contracted with Adivent for sales program development and execution targeted to telecom operators in Central Europe. The new partnership may extend into other areas such as Northern Europe in the future. Adivent offers a new alternative that streamlines the sales and operations process and allows telecom suppliers to quickly establish a sales presence in Europe at a fraction of the time and cost it typically takes using traditional methods
Affiliated Computer Services, Inc. (ACS) will officially open a new state-of-the-art facility in Pasay City, Philippines, expanding its global network of international capabilities. The 8,582 square meter facility will initially employ more than 1,000 people, with 2,500 square meters to expand to handle new business opportunities.
Posted by jbowles at 06:43 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 06:39 PM
